In its latest economic bulletin, the European Central Bank (ECB) said that most firms in the Eurozone will likely see another year of supply disruptions, as they prepare to pass the rising costs to clients.

Key takeaways

“30% of the companies also said they expected supply constraints and higher input costs to last for another year or longer, with a slightly lower percentage of respondents indicating they would continue for between six and 12 months.”

"Supply chain disruption was likely to persist for several months before gradually easing in the course of 2022, while more substantial capacity investments would take effect in 2023."

“Some two-thirds of respondents, particularly in the wholesale sector, expected to pass on "a lot" or some of their rising costs to their clients.”

"Most contacts anticipated higher wage increases in upcoming wage negotiations, broadly mirroring the recent pick-up in consumer prices.”