Supply shortages expected to weigh on growth into 2022

for this year to 6.7pc, down from 7.1pc previously, following May’s weak growth numbers.

Liz Martins, an economist at HSBC, said: “The rain, pingdemic and other supply shortages appear to have put the brakes on growth.”

Global shortages of commodities are pushing up the price of industrial metals, while forecasters said a crippling microchip shortage that has hit production of cars, consumer electronics and industrial machines in recent months will go on longer than expected.

UBS said the shortage is expected to last “well into 2022”, pointing at Covid outbreaks in Malaysia, a major hub for chip packaging and testing.

UBS said supply problems for carmakers should ease in the coming months as chip makers allocate more capacity to the sector. However, analysts said this would be likely to come at the expense of manufacturers who make industrial robots and other machinery used in factories.

The bank said manufacturers are likely to stockpile chips in future as a precaution.