- Input cost inflation has risen to a 37-month high, primarily driven by surging gas and oil prices amid cold weather in Europe and the U.S.
- Cyrus de la Rubia of Hamburg Commercial Bank indicates a potential recovery, noting a rebound in output and increased optimism regarding new orders, although companies continue to reduce inventories rapidly and face challenges in passing cost increases onto customers.
- Despite these signs, firms are still laying off workers at a fast pace, which may reflect efforts to improve productivity amidst a prolonged period of weak demand.
