Eurozone manufacturing activity marks sharpest decline since November

By Tuba Ongun

ANKARA (AA) — The Euro area manufacturing activity registered its sharpest decline since November 2022 last month, according to data released on Monday by US-based financial services company S&P Global.

The eurozone manufacturing purchasing managers' index (PMI) decreased to 47.3 in March, from 48.5 in February, S&P Global said.

"Eurozone manufacturing remains in troubled waters, with factories reporting a fall in demand for goods for an eleventh straight month amid the surging cost of living, tighter monetary policy, a shift to inventory destocking and subdued customer confidence," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

The reading was slightly up from a preliminary estimate of 47.1.

Manufacturing output increased only slightly in March, but at the strongest pace since May 2022.

Factory order books continued to narrow at end-March but production levels were supported by the supply of critical raw materials and components thanks to shortened supplier delivery times.

Average input prices declined in the month for the first time since the early stages of the COVID-19 pandemic in 2020, reflecting receding supply constraints.

Greece saw the strongest improvement in manufacturing sector performance, followed by Spain and Italy.

Manufacturing PMIs for Germany and Austria fell to their lowest level in almost three years, the report showed.