Euro zone business surges, but worries linger

Business activity is roaring back in the euro zone.

And the bloc's dominant services sector is leading the way as lockdowns ease.

New figures Wednesday (August 4) showed the composite Purchasing Managers' Index hitting 60.2.

That was its highest reading in 15 years, and way above the 50-point mark that signifies rising activity.

Multi-year highs were posted around the region, including in Germany and Italy, though France did see a slight dip.

The boom comes as more and more services businesses begin to reopen.

Though manufacturing also expanded at a blistering pace.

Now rising prices look like one worry, with the input-price index coming close to a 21-year high.

Inflation was driven higher by supply chain disruptions and labour shortages.

Health worries also linger.

A Reuters poll last month showed that firms see new twists in the health crisis as the biggest risk over the coming months.

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