Worsening supply-chain bottlenecks around the world and a record surge in the prices of some raw materials and other supplies for manufacturers is dragging on the world economy, suggesting a slowdown this summer will extend through the end of this year.
Surveys of purchasing managers conducted over recent weeks point to a sharp slowdown in European factory activity as businesses reported difficulties getting hold of the parts and raw materials they needed.
But in Japan and Australia, the lifting of restrictions that were imposed to contain the Delta variant of the coronavirus has boosted growth in the services sector.
That combination likely means the global economy will continue to recover in the final months of the year, but not at the pace reached in the second quarter, when reopenings led to a growth spurt.
Figures for gross…