European Factories Hit by Biggest Cost Surge in Nearly 4 Years

Higher energy prices and supply disruptions were driving inflation higher while slowing factory growth.

Tibard employees make uniforms for health workers at NHS at their factory in Dukinfield, England, on April 6, 2020. Molly Darlington/Reuters

European manufacturers raised prices at the fastest pace in nearly four years in May as the war in the Middle East pushed up energy costs, disrupted shipping routes, and squeezed supply chains.

Manufacturing surveys released by S&P Global on June 1 showed that factories across the UK, Germany, France, and the eurozone overall reported higher costs for fuel, electricity, transportation, and raw materials.