The supply crisis has hit two of Europe’s largest economies. The recovery in Germany and France has stalled in September, inasmuch as logistics problems slowed growth in the services sector.

Shortages of spare parts and raw materials proved to be a major constraint on the German and French markets. Business activity in both countries declining more than forecast. The German service sector has grown substantially over the summer after the restriction was lifted due to the coronavirus, but suffered from a “delta” strain in September. Local lockdowns have increased shipping costs and disrupted global supply chains.