Euro zone: deceleration in sight – Boursorama

Christine Lagarde, President of the ECB wanted to be reassuring about the acceleration of inflation to 3% in August, due according to her to economic factors. (© D. Rolant / AFP)

Supply difficulties are starting to weigh on the pace of growth in Europe.

At the start of the last quarter, has the euro zone eaten its white bread? The question seems daring to say the least, even preposterous, in view of recent statements by Christine Lagarde, President of the European Central Bank.

In the Europe of the Twenty-Seven, “the economy rebounded by 2.2% in the second quarter, a level higher than expected, and should remain dynamic in the third”, according to her, thanks in particular to the success of the vaccination campaigns which have allowed a vast reopening of the economy. He added: “The latest projections from our services are based on annual real GDP growth of 5% in 2021 and 4.6% in 2022.”

Supply tensions

But the publication on September 23 of the PMI Composite index in the euro zone tempered this fine optimism. According to the results of surveys carried out among purchasing managers by the much listened to IHS Markit institute, this indicator indeed fell in September, falling to 56.1 (against 59 in August), its lowest level for five month. In other words, this is the weakest expansion in activity since April 2021.

Certainly, a moderation in the pace of growth was expected after the peaks reached at the beginning of the summer, due to supply difficulties, product shortages and rising input costs (the most

Supply difficulties are starting to weigh on the pace of growth in Europe.

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