LONDON (ICIS) – Eurozone industrial sector momentum moved further into contractionary territory in April, as new orders fell at the sharpest pace in 2024, hitting a four-month low.
The Eurozone Manufacturing Purchasing Managers' Business Condition Index in April rose from 44.4 in December to 46.6 in January, and then fell to 45.7 in April compared to 46.1 in March, marking the third consecutive month of decline. Ta.
The figures represent the 22nd consecutive month of economic decline for the sector, driven by continued weakness in Germany, Austria, France and Italy, offset by strong growth in Greece and Spain. A PMI score above 50.0 indicates growth.
On the plus side, this year saw the lowest rate of decline in factory output, faster delivery times during the month, and the slowest decline in operating costs for manufacturers in 2024.
The data, released by S&P Global on Thursday, is in line with recent reports from the UK and the US, showing manufacturing activity in both economies fell back into contraction territory last month.
For the UK and US, March saw the first tentative economic expansion in months, but US demand has since slowed and the Red Sea crisis has reduced UK output, new orders, employment and stock purchases. It got worse.
What will save the euro area economy? “It's a difficult question, but one thing is clear: it's not manufacturing,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
He added: “A growing body of evidence highlights a clear lack of demand, as evidenced by the unprecedented rapid decline in new orders over the past four months and the lack of international support.” He added that the current situation “foreshadows the postponement of all orders.” Signs of recovery. ”
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