Euro Area Faces Capacity Bottlenecks as Recovery Gathers Pace
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Employees work on a Volkswagen e-Golf electric automobile on the assembly line inside the Volkswagen AG (VW) factory in Dresden, Germany, on Monday, April 3, 2017. Diesel cars' popularity in Europe has been waning as Volkswagen's emissions-test manipulation scandal, which emerged in late 2015, compounded concerns that pollutants from the fuel are outweighing the benefits of its lower CO2 emissions.
Photographer: Jasper Juinen/BloombergEuro-area businesses are struggling to hire workers fast enough to meet increasing demand as the recovery strengthens.
“Operating capacity is being strained despite the region seeing the best spell of employment growth for a decade,” said Chris Williamson, chief business economist at IHS Markit in London. “Rising demand is also boosting firms’ pricing power, both for goods and services.”