Eurozone manufacturing PMI marks 4-month lows

S&P Global Market Intelligence reports show a drop to 47.3 points in the manufacturing PMI in the euro area

The deterioration in factory activity in the eurozone worsened in March, when the purchasing managers’ index (PMI) fell to 47.3 points from 48.5 the previous month, its worst reading in four months, according to S&P Global. Market Intelligence.

Among the countries analyzed, the best manufacturing activity data in March were registered in Greece and Spain, with 52.8 and 51.3 points, respectively, while Germany (44.7) and France (47.3) recorded their worst readings at 34 and 5 months, respectively.

“The eurozone manufacturing sector continues to struggle, with factories reporting a drop in product demand for the 11th consecutive month, due to rising cost of living, tighter monetary policy, a turnaround towards destocking and subdued customer confidence,” said Chris Williamson, chief economist at S&P Global Market Intelligence.

In March, the companies surveyed commented that the improvement in the availability of materials, together with the drop in demand for inputs, led to a drop in supplier prices, which, together with lower energy costs, resulted in the first decline in the average prices paid by the manufacturing sector in almost three years in March.

However, the prices charged continued to rise, albeit at the slowest pace in the last 26 months.

“The lack of demand has resulted in a major shift in pricing power, shifting from seller to buyer,” Chris Williamson said.

Source: dpa

(Reference image source: Europa Press, dpa) 

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