Eurozone Manufacturing Shrinks Further
March 01 2024 - 12:26AM
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The euro area manufacturing activity continued to shrink in
February but the pace of contraction was moderate, final data from
the purchasing managers' survey by S&P Global showed
Friday.
The HCOB manufacturing Purchasing Managers' Index, or PMI, fell
slightly to 46.5 from January's 10-month high of 46.6. The score
was above the flash 46.1.
The reading suggested the second-slowest deterioration in
manufacturing conditions since March 2023.
Factory orders declined at the slowest pace since March last
year. Production decreased midway through the first quarter,
although the rate of contraction held steady.
Companies reduced their inventories and operating expenses
continued to fall. Input price inflation was the weakest since
March 2023. Prices charged for Eurozone goods were discounted
further.
Further, prospects regarding future output remained cautiously
optimistic.
The decline in the manufacturing sector was largely driven by
the largest economy of the single currency union, Germany.
Spain returned to growth for the first time in nearly a year,
while softer contractions were seen in Italy and France.
Germany's HCOB manufacturing PMI dropped for the first time in
seven months in February. The index slid to 42.5 from an 11-month
high of 45.5 in January.
Meanwhile, France's HCOB factory PMI rose to 47.1 from 43.1 in
the prior month. The measure hit the highest since March 2023. The
initial score for February was 46.8.
Italy's manufacturing PMI posted 48.7 in February, up from 48.5
in January. The score was well above economists' forecast of
49.1.
Spain returned to growth in February with both output and new
orders staging marginal improvements. The corresponding index
registered 51.5, up from 49.2 a month ago.
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