Eurozone business activity remains strong despite supply pressures

August 23, 2021: Business activity in the eurozone is hovering near a 15-year high despite slightly cooling in August due to supply pressures, a closely-watched survey by IHS Markit showed on Monday.

The PMI Composite reading measuring corporate confidence slipped to 59.5 in August, just under the strong 60.2 figure given in July. A figure above 50 indicates growth.

The dip was explained in part by some business concern over the effects of the Delta variant of the coronavirus, but especially by demand outstripping supply as activity bounced back vigorously in the 19-nation eurozone.

"Supply chain delays continue to wreak havoc," IHS Markit's chief business economist, Chris Williamson, said.

The duo of surging demand and supply problems was pushing costs higher, he said, leading to "another near-record increase in average selling prices for goods and services".

AFP/APP