News agency reports Eurozone factory actions plummets
(MENAFN) A recent study by S&P Global has highlighted the continued decline in manufacturing activity across the Eurozone, with Germany, the region's largest economy, contributing significantly to the slowdown. The Purchasing Managers' Index (PMI) for manufacturing dipped to 46.5 in February, a slight decrease from January's 46.6. Although higher than the preliminary reading of 46.1, the figure has now remained below the crucial 50-mark, indicating contraction, for the 20th consecutive month.
While the rate of contraction in total factory output across the Eurozone remained unchanged from January, the region's manufacturers managed to clear pending orders, according to the S&P Global report. However, the persistence of the manufacturing downturn has led experts to suggest that the Eurozone's one-year industrial recession is far from over.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted that the decline in output is consistent with the previous month, attributing the trend to the struggles of heavyweight economies like Germany and France. The report underscores that Germany experienced its sharpest economic deterioration in four months in February, with separate research by S&P Global indicating that German manufacturing activity fell well below expectations, indicating an accelerated economic downturn.
De la Rubia further commented on the softer decline in input prices across the Eurozone, pointing out that it may not be solely due to geopolitical tensions in the Red Sea. Instead, he suggested that movements in commodity prices, such as the recent surge in oil prices, might be contributing to the nuanced economic landscape. As Eurozone manufacturing grapples with ongoing challenges, the report raises concerns about the region's ability to navigate a sustained downturn and highlights the critical role of heavyweight economies in shaping the overall economic trajectory.
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