Eurozone manufacturing industry experiences largest decline ...| MENAFN.COM

Tuesday, 06 December 2022 11:40 GMT

Eurozone manufacturing industry experiences largest decline since June 2020


(MENAFN) The Eurozone production area dropped more into tightening territory as request fell further and price weights strengthened, as shown by PMI figures from S&P Global issued on Monday.

The Eurozone Manufacturing PMI was reviewed declined to 48.4 last month from an initial estimate of 48.5 and under 49.6 the month before (August), indicating an additional falling of working circumstances for euro area goods producers.

It stated that "Demand for eurozone goods sank sharply in September as high inflation and economic uncertainty reportedly squeezed client appetite. Business confidence subsequently fell to its lowest level since May 2020, leading firms to cut purchasing activity further in anticipation of more challenging conditions."

In the meantime, inflationary weights were on the hike last month.

While weights coming from material deficits had allegedly faded marginally, several firms commented on increasing energy prices.

Remarking on the last Manufacturing PMI data, Chris Williamson, a head business economist at S&P Global Market Intelligence, stated that "The ugly combination of a manufacturing sector in recession and rising inflationary pressures will add further to concerns about the outlook for the eurozone economy."

He highlighted that "Excluding the initial pandemic lockdowns, eurozone manufacturers have not seen a collapse of demand and production on this scale since the height of the global financial crisis in early-2009."

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