LONDON (Reuters – The euro zone’s manufacturing activity remained robust at the close of 2021, as many factories took advantage the easing supply chain bottlenecks to stock up on raw materials at a record speed.

A global coronavirus epidemic had caused factories to struggle to obtain the raw materials needed, sending costs skyrocketing. However, a temporary easing in supply problems led to significant price pressure drops.

IHS Markit’s November Manufacturing Purchasing Managements’ Index (PMI), fell to 58.0 from November’s 56.4, which matches an initial “flash”, but is still above the 50-mark that distinguishes between growth and contraction.

A composite PMI, an index that measures output and is used to determine economic health, was stable at November’s 53.8.

Joe Hayes from IHS Markit, senior economist said that although it has been a difficult time for manufacturers in the euro zone, the most recent survey data doesn’t dampen the holiday cheer.

“We are seeing some very encouraging, but tentative signs that supply chain crises which have plagued Europe’s production lines is starting to ease. While there were no significant gains, PMI data revealed that December saw stocks of purchase increase at an unprecedented rate.

The input prices index fell to 86.7 (from 88.9) due to this easing. This allowed factories to raise prices more slowly than usual in November.

Hayes said, “Easing inflation rate are again a welcome signal, but we still have hot territory.”

Although the European Central Bank did not take a major step to reverse crisis-era stimulation last month, it raised its inflation projections. Now they expect that it will be 3.2% this year. This is well above its 2.0% target.