Signs that the supply chain crisis that has plagued economies across the world is easing are emerging in Europe, reveals a closely watched survey released today.
The amount of time it takes manufacturers in the Eurozone to get their hands on materials rose at the slowest pace since February last year, according to IHS Markit’s latest purchasing managers’ index (PMI).
In response to easing delivery times, manufacturers scrambled to stock up on components, with inventories swelling at the fastest pace on record.
As a result of unravelling supply chain snarl ups, the rate of input price inflation cooled. However, the rate of cost increases for businesses did remain among the highest in the survey’s history, IHS Markit said.
Activity in Eurozone’s manufacturing sector cooled slightly over the last month, with the PMI edging down to 58 in December from 58.4 in November.
A reading above 50 indicates a majority of firms reported stronger activity.
Joe Hayes, senior economist at IHS Markit, said the survey displayed “very welcome signs that the supply chain crisis which has plagued production lines all across Europe is beginning to recede.”