The decline of the manufacturing industry in the Euro Zone deepened in March

In the euro area, manufacturing activities slowed in March as the rising cost of living forced consumers to be cautious when buying.

S&P Global has announced final data for the Eurozone Manufacturing Purchasing Managers’ Index (PMI) for March.

Consequently, the activities of factories in the Eurozone were negatively affected by the fact that consumers were cautious when it came to buying with the rising cost of living after unusually high inflation.

The manufacturing PMI, which in February was at 48.5 in the Euro Zone, fell to 47.3 in March and remained below 50 points, indicating a 9-month contraction.

S&P Global announced the March manufacturing PMI at 47.1 points in the headline data.

‘PRODUCTION IS IN RIPTY WATERS’

Chris Williamson, chief economist at S&P Global, said: “Manufacturing output in the euro zone has fallen for the 11th straight month as factories report a drop in demand for goods amid rising cost of living, Tighter monetary policy by central banks, companies beginning to divest their shares, and declining consumer confidence continue to be in troubled waters,” he used the phrase.

Noting that producers’ production costs have fallen for the first time since July 2020, with lower energy costs and improved supply chains, Williamson said: “These lower costs support slower sales price increases, which in turn helps lower prices to the consumer.” he performed the assessment of it.

For its part, annual inflation in the Eurozone, which was 8.5 percent in February, was determined at 6.9 percent in March due to the fall in energy prices, despite the more aggressive tightening of monetary policy by the European Central Bank (ECB).

In the PMI data, above 50 points indicates growth, below 50 points contraction. (AA)