Eurozone manufacturing activity shrinkChristian Fernsby ▼ | April 1, 2020
Eurozone manufacturing activity contracted at the fastest pace in more than seven years in March as the outbreak of coronavirus, or covid-19 weighed on orders, output, employment and confidence, final data from IHS Markit showed on Wednesday.
European factory The final factory Purchasing Managers' Index fell to 44.5 from 49.2 in Febr
Topics: Eurozone manufacturing
The score has remained below 50.0 for fourteen consecutive months and reached its lowest level in 92 months.
The survey showed that covid-19 related shutdowns pulled down output and orders in March. The deterioration in manufacturing output was the greatest since April 2009.
Similarly, new orders deteriorated to a degree unsurpassed for just under 11 years.
Manufacturers continued to face significant obstacles in securing supplies. The average lead times deteriorated to the greatest degree in nearly 23 years of data collection.
Firms reduced their holdings of both input and finished goods in order to increase working capital. Further, manufacturers cut their employment levels at the sharpest pace in over a decade.
There was a marked decrease in input costs due to fall in raw material prices. Output charges also fell to the greatest degree recorded by the survey for four years.
Reflecting concerns over the short- and long- term impacts of the covid-19 pandemic, business sentiment logged its biggest monthly fall on record. ■