Eurozone households’ confidence in the economy declined for the second straight month in August as the spread of the Delta coronavirus variant prompted restrictions across the continent.

The European Commission said on Monday that its measure of consumer confidence in the countries that share the euro currency edged down to -5.3 in August from -4.4 in July. Economists had forecast that consumer confidence would come in at -4.8. Despite the decline, eurozone consumer confidence remains above its pre-pandemic level, the European Commission said in its report.

Meanwhile, the UK recovery eased sharply this month as businesses across the economy grapple with staff shortages caused by the pandemic and ongoing supply chain issues.

Growth across the UK private sector slowed to a six-month low in August, according to data provider IHS Markit’s monthly survey of purchasing managers at UK firms.

Companies across the services and manufacturing sectors reported that their business activity was hit by staff shortages and material shortfalls. This pulled IHS Markit/CIPS flash composite Purchasing Managers’ Index, or PMI, down sharply, to 55.3 in August from 59.2 in July. This was the index’s lowest reading since February, worse than expected, but nonetheless above the 50 mark that separates expansion from contraction.

Finally, a report released on Wednesday by the US Commerce Department showed a modest decrease in new orders for US manufactured durable goods in the month of July.

Orders for durable goods fell by 0.1 per cent in the review month following a 0.8 per cent increase in June according the report. Economists had been expecting a 0.5 per cent decline.

The dip in durable goods orders came as orders for transportation equipment tumbled by 2.2 per cent in July, after soaring by 1.4 per cent in the previous month.

Excluding transportation, new orders increased by 0.7 per cent. Orders for non-defence aircraft and parts led the way lower, plummeting by 48.9 per cent in July after surging by 4.7 per cent in June.

This report was compiled by Bank of Valletta for general information purposes only.