Eurozone: Processing at a 15-month low in April

The manufacturing sector in the eurozone lost further momentum in April at the beginning of the second quarter, as production grew only marginally and with the lowest rate since June 2020, S&P Global announced.

The manufacturing index was at a 15-month low in April, at 55.5 points from 56.5 points in March.

“The manufacturing sector looks set to face a difficult period of declining output and rising prices,” said Chris Williamson, an economist at S&P Global.

The slower growth was accompanied by a sluggish increase in orders and a supply-side pressure as coronavirus restrictions and the war in Ukraine cause problems.

Amid supply chain challenges, input price inflation accelerated to a five-month high due to rising fuel and energy costs.

Manufacturing companies responded with the fastest rising selling prices in history.

Production trends appear to be deteriorating. “Future production expectations remain very subdued by historical standards and the slowdown in new order growth is indicative of declining factory output across the euro area in the coming months, given current stock levels,” said Chris Williamson.