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Shortages to send eurozone goods prices higher, but probably not for long
Across eurozone industry, multiple sectors are now reporting significant shortages in equipment. The European Commission’s Economic Sentiment Indicator provides quarterly information on which factors are limiting production and ‘equipment’ has spiked as a factor in 2Q 2021. In fact, for total eurozone industry, it is now at its highest level since the start of the indicator in 1985, with 22.8% of businesses reporting equipment shortages as a key factor limiting production. Shortages are rising across sectors, but the sectors affected most by this are logical given the pressing problems in computer chips, ... (full story)