Factories in the eurozone are hiring new workers at a record pace to keep up with continued strong demand for orders.
Job creation was particularly pronounced in Germany and Austria last month, according to a survey of purchasing managers by IHS Markit. Manufacturers continue to face huge supply chain bottlenecks and pass on rising costs to customers.
As economies around the world recover from the COVID-19 epidemic, factories in Europe are running at full capacity. Companies in North Asia have also benefited from the growth in global demand, while the decline in economic activity in Southeast Asia, which is now one of the worst affected regions in the world, is a reminder of how quickly the threat can break out.
"it is very difficult for manufacturers and suppliers to increase production fast enough to meet demand, thus pushing prices higher," said Chris Williamson, an economist at IHS Markit. "the capacity limit indicator is still flashing red."
New orders surged in July, leading to a sharp increase in the backlog. There is a general shortage of raw materials and poor transport conditions, resulting in input costs and sales prices reaching record highs.