Brussels
The recovery of the eurozone economy is losing steam, a closely watched survey, with big supply chain problems at factories causing price hikes not seen in twenty years.
“The ongoing pandemic means supply chain delays remain a major concern,” warned Chris Williamson, Chief Business Economist at IHS Markit. This was “constraining production and driving prices ever higher both in the manufacturing and in the services sector,” he said.
The purchasing managers’ index (PMI), which measures corporate confidence, demonstrated the slowdown clearly.
IHS Markit said it slipped to 54.3 in October, after posting 56.2 points in September and a high 59 points in August. A figure above 50 indicates growth.
IHS Markit said supply problems were especially felt in Germany, the EU’s export powerhouse that depends on the global economy to churn out high-value goods, such as cars and machinery.
While the rate of growth was still there, IHS Markit said that the eurozone could falter in the near-term “as the pandemic continues to disrupt economies and push prices higher”.—AFP
