Euro-zone business surveys published this week highlighted that many of the region’s manufacturers are struggling with supply shortages and logistical constraints and illustrated that the problem goes much wider than a lack of semiconductor chips in the auto sector. These shortages may last a little while longer, putting upward pressure on prices. But the ECB has already stated that it will look through inflation caused by “temporary bottlenecks”. Meanwhile data out next week are likely to show that retail sales and industrial production picked up in March.
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