PMIs disappoint

Eurozone PMIs this morning have disappointed as peaking demand in Q2, supply chain issues and Delta concerns are all taking their toll. Highlights from the Markit press releases:

• "Firms' costs meanwhile rose at the fastest rate in 21 years as demand again outstripped supply, with price rises increasingly feeding through from manufacturing to services."
• "Robust but slowing growth was recorded across both manufacturing and services, with the latter outperforming modestly. Whereas the service sector merely saw growth slip to the weakest since May, manufacturers reported the smallest production gain since January."
• "Measured overall, inflows of new orders rose at the slowest pace since April, with demand growing at reduced rates in both manufacturing and services after exceptionally strong gains seen in prior months. "
• "Growth slowed especially sharply in Germany, down to its lowest since February, with marked coolings seen in both manufacturing and services, the former in particular hit by supply constraints"
• "Growth also moderated in France, slipping further from June's peak to the lowest since April. The service sector showed more resilience than manufacturing, the latter seeing output increase only modestly as shortages continued to bite."
• "Growth in the rest of the eurozone as a whole outpaced that seen in Germany and France, though eased to the slowest since April, led by a softer services expansion and some waning of growth in manufacturing. "