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Systematix Research Report
A slippage in August 2021 global manufacturing Purchasing Managers’ Index suggests a modest fall in global output.
Among the G-20 economies, manufacturing PMI in the U.S. and Europe remained expansionary but contracted sharply in key Asian economies as the rising incidence of the Covid-19 Delta variant disrupted production activities.
The production downturn in Asian economies has led to supply shortages, especially in the U.S. and Europe, and strong demand conditions have led to a rise in input prices.
Continued demand-supply disparity (strong demand conditions in Western economies and disruptive manufacturing activities in Asian economies) due to differing vaccination rates and rising freight costs would further intensify price pressures in FY22.
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