Industrial companies seem to be the bright spot in the current coronavirus crisis. According to the UK market researcher Markit, activity in the sector increased further last month to its highest level in the last three years. The growth spurt did lead to supply chain problems.
According to chief economist Chris Williamson of IHS Markit, the industry is developing more and more as a bright spot in the eurozone. The sector benefited from stronger demand. The problem is that this led to a shortage of raw materials. Furthermore, input costs peaked and delivery times increased rapidly. “The growth spurt has brought with it its own problems, “says Williamson” there are reports of shipping delays and shortages of materials everywhere, leading to near-record delays in the supply chain.”
Coronavirus measures in the euro area have paralysed large parts of the consumer-oriented services sector, including the travel and hospitality sectors. This means that it is up to the manufacturers to support the economy.
The high demand for industrial products has prompted the factories to employ more staff on balance for the first time in almost two years. According to Markit, industrial activity increased in all eurozone countries except Greece. The companies observed a higher demand, both at home and abroad. This is probably due to the coronavirus vaccinations, which feed the hope of economic recovery.