BENGALURU/LONDON—Euro zone business growth slipped to a six-month low in October as supply chain bottlenecks and logistical issues related to the COVID-19 pandemic pushed input prices to rise at the fastest rate in over two decades, a survey showed. Government restrictions are being lifted in the currency bloc but shortages of raw materials in the manufacturing sector are impacting growth and the pent-up demand unleashed across the services industry is waning. IHS Markit’s Flash Composite Purchasing Managers’ Index (PMI), a good gauge of overall economic health, fell to a six-month low of 54.2 in October from 56.2 in September, just below an earlier 54.3 “flash” estimate. “The PMIs suggest the euro zone’s economic recovery will slow markedly in Q4 as supply shortages intensified throughout the region, especially for manufacturers,” said Jessica Hinds at Capital Economics. “They also show that price pressures are building, even in the periphery.” A Reuters poll …
Euro Zone Business Growth Slipped to Six-Month Low in October as Price Pressures Soared
November 4, 2021
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