By Ron Howells • 23 May 2021 • 11:08
Eurozone Economy Booms As Virus Restrictions Are Lifted.
According to a survey published on Friday, May 21, business activity in the eurozone is growing at its fastest rate in three years, as Europe’s economy kicks into gear after months of Covid-19 restrictions.
The closely-watched study compiled by economic data group IHS Markit indicated that the jump in demand was even overwhelming the economy, with factories and businesses unable to keep up with record demands.
According to the data, “order inflows surged to an extent not seen for almost 15 years”, the report said.
The firm’s PMI index, one of the earliest indicators for where the economy is heading, said activity rose from 53.8 in April to a strong 56.9 in May, above the 50-point level that indicates growth.
Growth would have been “even stronger” had it not been for supply chain delays and difficulties restarting businesses quickly enough to meet demand.
Among the countries, IHS Markit said France, where the pandemic downturn was deep, grew “especially sharply”. According to the data, “order inflows surged to an extent not seen for almost 15 years,” economic data group IHS Markit said.
Chris Williamson, the chief business economist at IHS Markit, said growth would have been “even stronger” had it not been for supply chain delays and difficulties restarting businesses quickly enough to meet demand.
Germany also saw strong output, although “the manufacturing sector saw growth slow from the recent record pace of expansion thanks to supply chain bottlenecks,” it said. The struggle to meet the frenetic demand will likely have an effect on prices, the survey showed.
How long these inflationary pressures will persist will, however, depend on how quickly supply comes back into line with demand. Meanwhile, French Finance Minister Bruno Le Maire has urged his EU partners to gear up for a second round of economic stimulus packages to ensure Europe doesn’t lose ground to the US and China.
The Euro Weekly News is running a campaign to help reunite Brits in Spain with their family and friends by capping the costs of PCR tests for travel. Please help us urge the government to cap costs at http://www.euroweeklynews.com/2021/04/16/ewn-champions-the-rights-of-brits-in-spain-to-see-loved-ones-again/
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you donâ€™t already have one. Review our
Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!.
Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.
Download our media pack in either English or Spanish.