New jobs were created last month, especially in Germany and Austria.
Eurozone the factories are hiring new employees at a record pace to keep up with a strong order backlog, he says Bloomberg.
New jobs were created last month, especially in Germany and Austria, according to the IHS Market Purchasing Managers Index.
The Purchasing Managers ’Index has typically predicted economic growth fairly reliably. The eurozone index stood at 62.8 in June, a small drop from July, when the index was at a record high of 63.4.
Keeping the index above 50 points means the economy is growing.
“The small slowdown in euro area industrial growth following second-quarter record-breaking enlargement should not in itself be a major concern,” said IHS Markit economist Chris Williamson According to Reuters.
However, manufacturers continued to face significant supply chain bottlenecks in their production and passed on rising costs to customers.
“Manufacturers and their suppliers have difficulty raising production volumes fast enough to meet demand, driving prices even higher. Capacity constraint indicators continue to flicker red, ”Williamson said, according to Bloomberg.