Euro zone factory downturn deepened again in March, PMI shows
Reuters
Published Apr 02, 2024 09:06
LONDON (Reuters) - Euro zone manufacturing activity took a further turn for the worse in March, contracting at a steeper pace than in February, as demand continued to fall, according to a survey which nevertheless showed an uptick in optimism.
HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dipped to 46.1 in March from February's 46.5, beating a preliminary estimate of 45.7 but staying below the 50 mark denoting growth in activity for a 21st month.
An index measuring output, which feeds into a composite PMI due on Thursday and is seen as a good gauge of economic health, rose from February's 46.6 to 47.1, improving on the flash estimate of 46.8.
"It's a bit disheartening: over the last eight months, the manufacturing industry has been gradually climbing the Output PMI ladder, but it still finds itself on the basement staircase," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"However, progress to the next floor has yet to materialise, largely owing to the underperformance of the German and French industries."
New orders fell for a 23rd month despite factories cutting their prices at the fastest pace since November. Any sign of easing inflationary pressures will likely be welcome news to the European Central Bank as they struggle to bring inflation back to target.
Factories across the bloc reduced headcount again but in a sign that managers expected an improvement the future output index, a gauge of optimism, rose to 57.4 from 57.1, its highest since April last year.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.