Eurozone Factory Boom Hits 9th Month as Cost Pressures Surge
(MENAFN) Eurozone manufacturers kept growing at a solid clip in October, but tightening supply chains and mounting costs are raising the stakes, survey data released Monday showed.
The seasonally adjusted S&P Global Eurozone Manufacturing Purchasing Managers’ Index slipped to 52.7 in October from 52.9 in September. The figure sits well above the 50 threshold separating growth from contraction, marking nine straight months of expansion across the single-currency bloc.
Growth was broad but not universal. Six of the eight countries covered by the survey reported rising manufacturing activity, while France and Italy were the only two to register declines.
Factory output climbed for a tenth consecutive month, though the pace eased to its weakest in four months as overall new order growth cooled. Export business, by contrast, accelerated, rising at its fastest rate in just over 4.5 years.
Hiring continued, with goods producers expanding payrolls for a third month running. Backlogs of work built up at a pace matching the fastest since May 2022.
Supply strains sharpened. Delivery delays from vendors worsened to their most severe level since June, and firms responded by building up input inventories at the greatest rate since December 2022 to guard against disruption.
Costs jumped as well. Input price inflation hit a five-month high, fueled by pricier energy and shortages of raw materials. Manufacturers passed much of the burden on, lifting their selling prices sharply and matching the rate of increase recorded in September.
Looking ahead, companies still expect output to rise over the next 12 months, but confidence has slipped below the survey’s long-run average.
The seasonally adjusted S&P Global Eurozone Manufacturing Purchasing Managers’ Index slipped to 52.7 in October from 52.9 in September. The figure sits well above the 50 threshold separating growth from contraction, marking nine straight months of expansion across the single-currency bloc.
Growth was broad but not universal. Six of the eight countries covered by the survey reported rising manufacturing activity, while France and Italy were the only two to register declines.
Factory output climbed for a tenth consecutive month, though the pace eased to its weakest in four months as overall new order growth cooled. Export business, by contrast, accelerated, rising at its fastest rate in just over 4.5 years.
Hiring continued, with goods producers expanding payrolls for a third month running. Backlogs of work built up at a pace matching the fastest since May 2022.
Supply strains sharpened. Delivery delays from vendors worsened to their most severe level since June, and firms responded by building up input inventories at the greatest rate since December 2022 to guard against disruption.
Costs jumped as well. Input price inflation hit a five-month high, fueled by pricier energy and shortages of raw materials. Manufacturers passed much of the burden on, lifting their selling prices sharply and matching the rate of increase recorded in September.
Looking ahead, companies still expect output to rise over the next 12 months, but confidence has slipped below the survey’s long-run average.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment