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Despite supply shortages and elevated commodity prices, the global recovery continues to gain traction, says Fitch Ratings.

In a new report, the rating agency said that GDP continued to rise in most major economies in the second quarter, and that signals such as industrial production surveys and labour market conditions point to sustained growth.

“A strong recovery in global GDP is continuing despite supply constraints that are pushing up prices and resulting in producer delays in meeting final customer demand,” it noted.

These supply-side limits, coupled with higher commodity prices, have boosted inflation in recent months, affecting certain markets.

“Stronger-than-anticipated price increases look to have played a part in weaker-than-expected real GDP growth in the U.S. in [the second quarter] and growth has also been lower than expected in parts of Asia,” it noted.

Yet at the same time, Fitch said GDP readings in Europe “have generally surprised on the upside” compared to its forecasts from June, driven by stronger results from the re-emerging service sector.