Business growth across the Eurozone remained strong last month, but high inflationary pressures placed a dent in demand while ongoing supply issues limited activity.
Source: IHS Markit
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Even though many restrictions imposed to contain the COVID-19 have been lifted, companies are suffering from shortages of staff, raw materials, and transport.
IHS Markit’s final composite Purchasing Managers’ Index (PMI) dropped to 56.2 last month from August’s 59.0 but remained above the 50 mark separating growth from contraction.
On Friday, the Eurozone manufacturing PMI showed growth remained elevated in September, but activity suffered from supply chain issues, and the bloc’s service industry also recorded a slower expansion rate.
A PMI for the service sectors dropped to 56.4 from 59.0, its lowest since May, while the business index fell to 53.3 from 57.9.
Demand dropped to a five-month low as companies passed on the proportion of rising input costs to consumers. The composite output prices index rose to 59.1 from 58.3, not far from survey highs set in the summer months.