Delivery crisis hit the two largest European economies. According to Bloomberg, in September, the restoration of Germany and France slowed down, since logistics problems slowed down the growth rate in the services sector.
The lack of spare parts and raw materials turned out to be a serious obstacle to the markets of Germany and France, and business activity in both countries decreased more than predicted. The German sector of services has grown significantly over the summer after removing the restriction due to coronavirus, but in September suffered from “Delta” -Stamma. Local locations increased the cost of transportation and violated global supply chains.
The private sector business index (PMI) in Germany fell to 55.3 points in September, while economists expected an increase of 59.2 points. In France, PMI decreased to 55.1 points compared with the estimate of 55.7 points.
“In general, the slowdown in demand growth, increase in prices and significant problems from the supply side, to put it mildly, are far from ideal conditions, while we are approaching another complex winter period,” said Senior Economist IHS Markit Joe Hace.
Earlier in September, the German Institute for Economic Research (IFO) lowered his forecast for GDP GDP in Germany for 2021. The largest economy of Germany predicted an increase of 2.5 percent. This indicator is 0.8 percent below the previous forecast. In the reduction of industrial production, the chief economist IFO Timo Vollonsusauser accused the supply failed.