The global economy is expected to surge over the coming months as Europe begins to catch up with the U.S. and China, but theSurveys of businesses from across Europe released Friday recorded the strongest increase in activity for more than two decades. That suggests the continent is set for the kind of growth already being experienced by the U.S.
“The survey also highlights how the Delta variant poses a major risk to the outlook,” said Chris Williamson, chief business economist at IHS Markit , the data firm that compiles the surveys. “Not only have rising case numbers led to a slide in business optimism to the lowest since February, further Covid waves around the world could lead to further global supply-chain delays.”
IHS Markit said its composite Purchasing Managers Index for the eurozone—a measure of activity in the manufacturing and services sectors—rose to 60.6 in July from 59.5 in June, reaching its highest level in 21 years. A reading above 50.0 points to an increase in activity.
The Delta variant has changed everything.
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