Economics
Global Supply Squeeze and Delta Virus Rip Through Factories
- PMI surveys show companies struggling to meet customer demand
- Virus spread is weighing on Asia’s factories as PMIs drop
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Orders at factories are piling up as companies around the world struggle to meet demand amid a damaging mixture of the coronavirus and widespread bottlenecks in supply chains.
In Europe, unfilled orders rose to an unprecedented level in August, according to an IHS Markit survey of purchasing managers. The strains are denting confidence in Germany, where big names from BMW AG to Siemens AG have warned supply problems could persist into next year or even longer.
For Asia, the situation is being compounded by one of the world’s worst Covid-19 outbreaks. Disruption from lockdowns has forced factories to halt or slow production, and survey readings point to contraction in a number of countries.