By Maria Martinez
Eurozone manufacturers lost further growth momentum in April at the start of the second quarter as output increased only marginally and at the weakest rate since June 2020, S&P Global said.
The S&P Global eurozone manufacturing purchasing managers index fell to a 15-month low of 55.5 in April from 56.5 in March. While still above the 50.0 no-change mark and therefore indicative of improving conditions, it marked a sustained loss of growth momentum as the headline PMI fell for the third month running.
“The eurozone manufacturing sector looks set for a difficult period of falling production and surging prices,” Chris Williamson, chief business economist at S&P Global said in the press release of the manufacturing PMI.
The slower expansion was accompanied by a subdued increase in new orders and sustained supply-side pressures as Covid-19 restrictions in China and the ongoing war in Ukraine caused disruptions, S&P Global said.
Amid supply-chain challenges, input price inflation accelerated to a five-month high due to souring fuel and energy costs. Manufacturers responded with the fastest increase in selling prices on record, S&P Global said.
Production trends look set to worsen, Mr. Williamson said. “Future output expectations remain very subdued by historical standards and the slowdown in new order growth is indicative of factory output across the eurozone falling in the coming months given existing inventory levels,” he said.
Write to Maria Martinez at [email protected]
Credit: www.marketwatch.com /