- Eurozone's final manufacturing PMI for April was 45.7, expected 45.6, previously 46.1.
Main findings:
- HCOB Eurozone Manufacturing PMI is 45.7 (March: 46.1). Lowest price in 4 months.
- HCOB Eurozone Manufacturing PMI Production Index: 47.3 (March: 47.1). Highest price in 12 months.
- Factory production falls at slowest pace in a year, boosting confidence, but decline in new orders accelerates
comment:
“What will save the eurozone economy? This is a difficult question, but one thing is clear: it will not be the manufacturing sector. On the contrary, this sector will continue to prolong the recession into April. Production fell at a similar pace to the previous month, and companies reduced purchases at an accelerating rate.To complicate matters, the inventory cycle showed no signs of turning around in April. The trend continues to be that inventories of both purchased and finished goods are depleted.
“The overwhelming evidence is that demand simply does not exist, as evidenced by the unprecedented rapid decline in new orders over the past four months and the lack of international support. As a result, backlogs have further reduced. At the same time, urgent delivery schedules by suppliers during April and the months leading up to it have revealed abundant logistics capacity and orders. This comprehensive snapshot shows that any signs of recovery are likely to be delayed and could last into the summer.
“Recoveries often start with positive momentum in the capital goods sector. Instead, in a worrying sign, demand for capital goods declined at an accelerating rate in the top three euro economies, leading to a decline in capital goods demand in April. Particularly hard hit. Of particular concern is that Germany, an industrial powerhouse, is dealing with a widespread recession across key sectors such as capital goods, intermediate goods and consumer goods.
“Spain's economic pulse is out of sync with the rhythm of the eurozone. This is evidenced by three consecutive months of sustained growth in manufacturing, with a notable expansion in April. This positive momentum is in sharp contrast to the subdued results seen in Germany, France and Italy, with this gap expected to gradually narrow in the coming months. is expected.”
Eurozone Manufacturing PMI
