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- Eurozone manufacturing sector contracts in February
Eurozone manufacturing sector contracts in February
According to the report from IHS Markit. in February manufacturing PMI slipping below 50.0 for the first time since June 2013. After accounting for seasonality, the PMI recorded 49.3, down from 50.5 in January. Although slight, the contraction signalled in February ended a run of growth in the manufacturing economy that had stretched to over five-and-a-half years.
By market group, weakness was again most apparent in the intermediate and investment goods sectors. Both recorded deteriorations in operating conditions compared to the previous month. In contrast, consumer goods continued to expand, albeit at a modest pace that was the weakest seen since July 2016.
By country, the weakest performers were Germany and Italy. The PMI for Germany slipped further below the 50.0 mark to record a 74-month low, whilst Italy saw its manufacturing PMI record its lowest level in nearly six years. Meanwhile, growth improved slightly in France, but remained historically weak, whilst there were deteriorations in growth seen in Austria and the Netherlands. Greece and Ireland bucked the general trend by recording stronger PMI readings in February.
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