The original title: high inflation is a drag on economic growth, and the euro zone's comprehensive PMI hit a half-year low in October

Source: Wall Street

Corporate costs in the eurozone have soared, driven by the supply chain crisis and high energy prices. This led toThe growth of business activity in the euro area has slowed this month.At the same time, the dominant in the euro zoneThe service industry is also struggling because of continuing concerns about the COVID-19 epidemic.。

October twenty _ secondThe initial PMI of euro zone comprehensive PMI for October released by IHS Markit is 54.3.，Hit a six-month low. The index is an important indicator of the overall economic health of the euro zone, up from 56.2 in September.

In response, Jack Allen-Reynolds, an analyst at Capital Economics, said:

"October PMI shares our view that economic growth in the eurozone will slow significantly in the fourth quarter and inflation is likely to rise further in the coming months."

"October PMI shares our view that economic growth in the eurozone will slow significantly in the fourth quarter and inflation is likely to rise further in the coming months."

Due toSupply chain disruptions and record increases in raw material prices, coupled with a shortage of heavy truck driversAs a result, the input price index jumped from 70.9 to 73.1, the highest level since records began in mid-1998.

In order to alleviate the profit pressure caused by high costManufacturers have pushed up the price of their products.Some of the costs have been passed on to consumers, but consumers cannot afford to transfer all of them, and producers are still skating on thin ice. According to data released by IHS Markit, the output price index climbed from 70.4 to 72.3, the highest level since the IHS Markit began collecting data at the end of 2002.

Europe's services sector was also hit, with the euro zone's services PMI falling from 56.4 to 54.7, the lowest since April.

In terms of the performance of European countries, Europe's largest economyActivity growth slows in GermanyAnd inThe expansion of France's service sector in October was dragged down by the weakness of manufacturers.This is because supply chain problems affect the output of manufacturers.

It is worth mentioning that those who have left EuropeIn Britain, the economy unexpectedly regained momentum in October。

The inflationary pressure in Europe continues unabated.

The output price index climbed to 72.3, the highest since records began in 2002, suggesting that soaring inflationary pressures in Europe will not dissipate soon.

After investors mercilessly attacked the Fed's claim that inflation was "temporary", the high output price index also suggested that the ECB's claim that inflation in Europe was "temporary" was debatable.

Earlier, Jens Weidmann, president of the Bundesbank and a member of the ECB's management committee, who will leave office on December 31st, continued to warn of inflation in his parting speech:

"the key is not to take an one-sided view of the risk of deflation, but also not to ignore the danger of potential inflation."