Eurozone manufacturing economy contracts at record pace in April

According to the report from IHS Markit, euro area manufacturing experienced a substantial deterioration in operating conditions during April as government restrictions to limit the spread of the global coronavirus disease (COVID-19) weighed on the sector. Output, new orders, export sales, and purchasing activity all fell at record rates, whilst supply side constraints intensified to an unprecedented extent. Confidence about the future sank to a fresh series low.

The Eurozone Manufacturing PMI registered 33.4 in April, down sharply from March's 44.5. Below the earlier flash reading, the latest PMI was the lowest ever recorded by the series (which began in June 1997), surpassing readings seen during the depths of the global financial crisis and indicative of a considerable deterioration in operating conditions.

Market groups data indicated that all categories recorded considerable deteriorations in operating conditions. Investment goods producers suffered the sharpest contraction.

At the country level, PMIs were down across the region, with numbers either at record lows (Austria, France, Greece, and Italy) or registering readings only surpassed during the worst of the global financial crisis. Greece and Spain recorded the lowest PMI numbers, followed by Italy and France. Netherlands fared the best, but even here the rate of contraction was considerable.