A survey shows that eurozone manufacturing activity remained strong last month, but it was curtailed by supply chain bottlenecks, while it was curtailed by supply chain bottlenecks. The composite input prices index climbed to 73.2 from 70.9, which is by far the highest since the survey began in mid 1998, because of these bottlenecks. Inflation is going to peak at 4.5 percent. That is very high but likely to abate over the course of next year, we already see promising signs in container shipping for instance, said Holger Schmieding at Berenberg. The supply constraints slowed growth in Germany, Europe's largest economy, for a third month, and that was a similar picture in France, Spain and Italy.
One senior official told Politico: We always expected inflation numbers to pick up this year, but the pick-up is faster than expected. We see levels that we haven't seen in a long time. European Central Bank Vice President Luis de Guindos said that, while inflation next year will slow, the intensity and speed of the decline may not be what we expected a few months ago. The demand unleashed across the services industry are waning as government restrictions are lifted, but shortages of raw materials in the manufacturing sector are impacting growth, as the shortages of raw materials in the manufacturing sector are impacting growth. The flash Composite Purchasing Managers" Index PMI fell in October to a six-month low of 54.2 in October, just below the earlier 54.3 flash estimate. Britain could deny EU of 15 billion dollars in science deal ANALYSIS Brexit LIVE: Ireland threatens to end ENTIRE deal live BLOG: The PMIs think the euro zone's economic recovery will slowly in Q 4 as supply shortages are getting weakened in the region, especially for manufacturers, said Jessica Hinds at Capital Economics. They show that price pressures are building even in the periphery. In October, the PMI index fell to a six-month low of 54.6, a notch lower than the preliminary estimate of 54.7, but still below the 50 mark separating growth from contraction.