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Business prices in the eurozone have risen sharply for more than two decades in September, a recent sign that the lack of sales is slowing down growth and rising prices.
Prices have gone up for manufacturers and operators at their highest level since 2000, with an increase in electricity prices for almost all production, according to a monthly IHS Markit survey.
Chris Williamson, an economist at IHS Markit, said the September PMI review “highlights the unjustified integration of slower economic growth and inflation”. Traders said they were pressured by delays in availability, declines and high prices, “often losing business with customers”, he added.
In addition, most of these increases are provided to customers – as evidenced by the rise in consumer prices which increased in September to Wednesday at the highest level in two decades, according to the report.
“The price crisis is still there and very high prices indicate that this is not going to happen anytime soon,” says Jessica Hinds, a European economist at Capital Economics.
The PMI “shows that inflation is higher in the coming months than we think,” he said. Eurozone prices soared for 10 percent in August.
Growth is also likely to slow, as evidenced by the IHS eurozone flash purchasing management index ‘index, which dropped to 8 months below 55.6 in September, down from 59 last month. Delivery time, the amount of delays in the sale of material goods, also grew rapidly.
“Manufacturing continues to be marred by declining supplies and supplies, the availability of critical goods and the closure of ports in Europe and Asia,” said Peter Vanden Houte, chief financial officer at ING. Eurozone growth “is at risk of barriers to access”, he added.
The euro’s PMI rate for employment during this period dropped to 4 months low by 56.3, while the trend following the reopening of the hospitality sector this summer.
Putting it all together on the manufacturing list, almost all manufacturing and employment, fell 5 months in 56.1 years – a decrease of the expected 58.5 economies but above 50, which shows many businesses reporting changes against the previous month.
The figures are in line with the number of euro items rising sharply in the third quarter, about 2.5%, according to Claus Vistesen, chief financial officer at Pantheon Macroeconomics. But he also points out that “the descent has now begun”.
Within the euro, growth slowed sharply in Germany to the lowest since February, with a sharp rise in France. The figures for the survey came as Spain changed the overall GDP growth rate for the second quarter to 1.1% from 2.8%.
The results of this study were based on a survey conducted between September 13 and 22 and were published one week earlier.