The sharp decline in production in France has significantly slowed down the growth rate of the German economy. The two main economies of Europe are facing a serious problem, significant delays in deliveries have led to the cancellation or postponement of contracts, writes Bloomberg…
Inflationary pressures have intensified, according to IHS Markit. “Manufacturing shortages are having a significant impact on production volumes and the order book,” said economist Joe Hayes. Business activity in Germany, Europe’s largest economy, fell to an eight-month low in October. In France, the performance is slightly better, the country has benefited from the growth of tourism.
Experts from the European Central Bank (ECB) have so far insisted that weak demand will delay rather than undermine the recovery and that price pressures will soon ease. Companies in Germany and France believe they are right, the newspaper notes.
Inflation in the euro area rose in September to 3.4 percent in annual terms. This is a record figure since the 2008 global financial crisis. Most of all, prices rose in Estonia, Lithuania (6.4 percent each) and Poland (5.6 percent).
At the same time, price increases in Germany reached a maximum in almost three decades. Inflation in Europe’s main economy rose to 4.1 percent in September.
#Europes #major #economies #face #major #challenge