Eurozone Manufacturing Sector Contracts At Slowest Pace In A Year
March 01 2020 - 11:18PM
RTTF2
Eurozone manufacturing activity contracted only marginally and
at the slowest pace for the past year in February, final survey
data from IHS Markit showed Monday.
The factory Purchasing Managers' Index rose to 49.2 in February
from 47.9 in January. This was slightly above the flash score of
49.1.
Although the PMI has recorded below the 50.0 no-change mark for
13 months in succession, February's reading marked not only a
one-year high, but also a second successive monthly rise in the
index.
"Despite widespread reports from companies that the coronavirus
outbreak disrupted supply chains and hit foreign sales, resulting
in considerably longer lead times and a steepening drop in export
orders, February saw encouraging signs that the eurozone's
manufacturing downturn is easing," Chris Williamson, chief business
economist at IHS Markit said. Although country level PMI readings
were generally higher in February, France PMI fell to a seven-month
low and there was further worsening in Italy. The biggest
manufacturing economy, Germany, also showed deterioration in
performance.
Nonetheless, Germany's manufacturing sector moved closer to
stabilization in February, despite supply chain disruption. The PMI
rose to a 13-month high of 48.0 in February, from January's reading
of 45.3.
The flash reading was 47.8. The survey showed slower falls in
output, new orders and employment.
France's manufacturing sector contracted for the first time in
seven months. The PMI dropped to 49.8 in February from 51.1 in
January but was above the flash 49.7. A key factor driving the
downturn was a fall in new orders.
Italy's manufacturing PMI dropped to 48.7 in February from 48.9
in January. Operating conditions deteriorated for the seventeenth
straight month. The major reason for the deterioration was further
reductions in output and new orders.
On the other hand, Spain's manufacturing sector returned to
expansion territory in February after contracting for eight
straight months. The PMI rose to a 10-month high of 50.4 from 48.5
in January.
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