European business growth hurt by supply issues, pricing

LONDON. Business growth across Europe remained strong last month but elevated inflationary pressures put a dent in demand while ongoing supply issues constrained activity, issues which are likely to continue, a survey showed yesterday.

IHS Markit’s final composite Purchasing Managers’ Index (PMI), seen as a good guide to economic health, sank to 56.2 last month from August’s 59.0, although still well above the 50 mark separating growth from contraction and just above a 56.1 “flash” estimate.

On Friday, a Eurozone manufacturing PMI showed growth remained robust in September but activity suffered from supply chain bottlenecks.