LONDON Reuters - Manufacturing growth in the euro zone increased slightly last month but supply chain bottlenecks worsened, putting a cap on output and driving the cost of raw materials up at the fastest rate in over two decades, a survey showed.
The coronaviruses have resulted in product shortages and left factories struggling to get the materials they need to manufacture goods, which has resulted in a shortage of heavy goods vehicle drivers.
In November from October's 58.3, IHS Markit's final Manufacturing Purchasing Managers' Index fell to 58.4 but still comfortably above the 50 mark separating growth from contraction, IHS Markit's final manufacturing Purchasing Managers' Index fell to 58.4 in November from October's 58.3.
An index measuring output, which feeds into a composite PMI due on Friday and has been seen as a good guide to economic health, rose to 53.8 from October's 53.3.
A strong headline PMI reading masks how tough business conditions are for manufacturers at the moment. As seen by a further improvement in new order inflows, supply chains continue to deteriorate at a worrying rate, said Chris Williamson, chief business economist at IHS Markit.
The input prices index was only just below October's record high, because of the disruptions that have made it a sellers' market for raw materials.
Since IHS Markit began collecting data 19 years ago, factories have increased their prices and passed on more of the rising costs to customers. The output prices index climbed to a new high of 73.7 from 72.6.
The European Central Bank's 2.0% target for inflation will be overtaken by com world europe's record-high likely-peak-peak -- 2021 -- 11 -- 30 in the bloc, which preliminary official data showed on Tuesday was a record high 4.9% last month.
Pressure on the ECB, which has undershot its inflation target for nearly a decade, has been put under pressure by rising inflation and a surge in house prices.
The ECB is expected to keep its key interest rates on hold through the end of 2023 at least, according to a November Reuters poll. Com business is above-ecbs inflation-remain target-next year- 2021 -- 11 -- 12 found.