PMIs show supply shortages still limiting growth

August’s global manufacturing PMIs brought more evidence of a slowdown in the sector. Growth was always going to fall back as activity approached more normal levels, but supply shortages are also playing a role. There is early evidence that the adverse effects of these shortages may have peaked: indices of suppliers’ delivery times and input prices have stopped rising, although they remain at very high levels.
Jennifer McKeown Head of Global Economics Service
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