The Eurozone Purchasing Managers’ Index (PMI) for the manufacturing sector in March saw its lowest level since April 2013, according to a London-based global data company on Monday.
“Manufacturing operating conditions in the eurozone deteriorated in March to the greatest degree for nearly six years,” IHS Markit report said.
After accounting for seasonal factors, the global data provider said that the PMI stood at 47.5 in March, down from 49.3 in February.
“March marked a second successive month that the PMI has posted below the 50.0 no-change mark,” it said.
As a critical measurement to indicate the health of the manufacturing sector, the monthly PMI indices — based on surveys and national data — show a growth with a value above 50 points, a contraction with a level below 50 points, compared to the previous month.
“The PMI has been on a broadly downward trajectory since reaching a series record high at the end of 2017.
“… And, in March, weakness was primarily centered on the intermediate and investment goods sectors,” IHS Markit said.
The monthly data revealed that the three largest economies of the eurozone posted sub-50.0 PMI figures in March.
Stating that the operating conditions deteriorated to the greatest degree in over six-and-a half years, the report said the overall downturn was led by Germany — 44.1 in March.
“Italy [47.4] fared little better, with its PMI at a near six-year low,” it said. “France [49.7] returned to contraction, having recorded modest growth in the preceding survey period.”