Some governments in the currency union have been encouraging citizens to stay at home to try and stop the more virulent variant from spreading.IHS Markit's final Composite Purchasing Managers' Index, seen as good guide to overall economic health, dropped to 52.3 in January from 53.3 in December."The euro zone economy has slowed further in January after seeing growth weaken in the final quarter of 2021," said Chris Williamson, chief business economist at IHS Markit.
Those measures had a particular impact on the services industry and its PMI fell to a nine-month low of 51.1 from December's 53.1. Consumers have seen prices rising sharply in recent months and January was no exception. With input costs rising, firms passed on some of that burden to customers and the composite output prices index rose to 61.9 from 60.6.
"A key concern is that inflationary pressures continue to build, with soaring energy prices likely to add further to upward price pressures in coming months," Williamson said.
stagflation incoming
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