The latest IHS Markit Europe PMI Composite Index for July actually showed a slight decline on the previous month for all sectors. Despite this slight cooling from 55.8 in June to 55.3 in July, economic growth across Europe remained strong and among the highest over the last six years.
Beneath the overall figures, the pharmaceutical and biotechnology sectors are gaining momentum with strong order books and profit margins. Alongside transportation, pharma and biotech are the strongest performing sectors at the moment, which is great news for investors and people working in these fields.
The growth of output through July in the pharma and biotech sector is the fastest for the last ten years and considering the sector was in contraction 12 months ago, the growth during this period is extremely positive.
Through 2015/16 the trend in new orders had been negative with companies experiencing a slow down until August 2016 when the rebound started and a change in momentum occurred.
Order books have improved significantly since and the overall situation has been helped by stronger growth in output prices than for input costs for the first time in 12 months.
Overall this is great news for the life sciences sector and presents a positive picture for the latter part of 2017 and early 2018. This growth has been reflected by the recent results from the latest report on jobs from IHS Markit and the REC which shows that staff appointments have increased at the fastest rate in the sector in over two years.
However on the downside for organisations, as the demand for staff increases and candidate availability decreases the pressure on wages will continue to grow, putting additional pressure on costs.
Nonetheless, let’s look at the positive side and the continual investment and growth of the life sciences areas.
Author: Liam O’Connell