According to Markit's monthly PMI, raw material, staff and skill shortages were all major factors stymieing output growth and contributing to a further marked increase in input purchasing.
UK aerospace and defence company Meggitt is to be taken over by US rival Parker Hannifin in a £6.3bn deal.
The dollar edged lower Monday, just above a one-month low, in tight trading ranges ahead of the release of key U.S. employment data later in the week which could influence Federal Reserve policy. The dollar index dropped close to 1% last week after Fed Chairman Jerome Powell stated, following the central bank’s July meeting, that interest rate increases were still a long way away and more economic progress was needed, particularly in terms of jobs being created, before the central bank started tapering its huge bond-buying program. Fed board member Lael Brainard restated the central bank's focus on further labor market progress at the weekend, while Minnesota Fed President Neal Kashkari warned that the spread of the delta variant of Covid-19 could slow the economy in the second half.