French industrial output fell unexpectedly, and the economy slowed down in Germany. The eurozone’s two leading economies have faced serious challenges amid supply chain disruptions and delays in numerous contracts.
Inflation has accelerated in both European states. The lack of manufacturing components affects the industrial output as well as the entire portfolio of orders. Germany’s business activity plunged in October to its 8-month low. Meanwhile, the situation in France is not so serious owing to its tourism industry.
At the same time, the European Central Bank continues to assert that sluggish demand is only delaying the economic recovery and not hindering it. The bank’s experts suggest that the current price pressure will soon be less noticed. The vast majority of German and French companies are inclined to believe these forecasts.
Inflation in the eurozone has hit a record high since the global financial crisis in 2008. In September, the indicator jumped to 3.4% year-on-year. Estonia, Lithuania (6.4% each), and Poland (5.6%) recorded the largest increase in consumer prices. Likewise, inflation in Germany soared to the 30-year high of 4.1% in September.
