Monday, 04 January, 2021
INFLATION snippets from the various EU PMIs
* German Manf PMI 58.3 (est 58.6)
“This increased supply-side pressure was reflected in a sharp acceleration in the rate of input cost inflation faced by German
manufacturers to the highest for just over two years. Metals were often reported as up price, as were chemicals and plastics. Average factory gates also rose at a faster rate in December, increasing to the greatest extent since March 2019. “
* French Manf PMI 51.1 (in line).
“On the cost front, input prices continued to rise in December, extending the current run of inflation to five months. Notably, the latest increase was the sharpest for almost two years. When explaining elevated costs burdens, panellists often cited higher prices for raw materials, with metals such as steel and aluminium mentioned in particular. Firms opted to pass on some of the additional costs to their clients, with an increase in average output prices in the last month of the year. Despite remaining modest overall, the rate of charge inflation accelerated to the quickest since October 2019.”
* Italian PMI 52.8 (est 53.5).
“Shortages and transport fees pushed costs higher again, with goods producers registering the most marked rate of input cost inflation since mid-2018.”
* Dutch manf PMI @ 58.2 (est 55).
“Output rose sharply. Moreover, it seems that demand has improved so quickly that firms cannot keep up. Both input prices and output prices increased sharply, which is a clear sign that demand is improving and the recovery is broad-based. For the first time since the start of the pandemic, backlogs of work
increased”
* Spain manf PMI: 51.0 (est 52.5) but moves back into expansion.
“Adding to the challenges facing the manufacturing economy are rising cost pressures, with latest data showing input prices rising to the greatest degree for nearly three years as supply shortages pushed up costs”
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