EZ manufacturing activity eases slightly in Feb - PMI

1st Mar 2024 08:45

(Sharecast News) - Eurozone manufacturing activity slowed slightly in February, but signs continued that contraction in the sector was easing, according to flash estimates from a survey published on Friday.

The Hamburg Commercial Bank manufacturing purchasing managers index (PMI) fell to 46.5 from January's 46.6). The PMI output index was unchanged at 46.6. A mark above 50 indicates expansion.

"The headline index was broadly unchanged from January's 10-month high of 46.6 and signalled the second-slowest deterioration in manufacturing sector conditions since March 2023," HCOB said.

"Further tentative signs of recovery in the euro area manufacturing sector were evidenced with forward-looking indicators such as new orders and purchasing activity signalling their softest falls in close to a year in February. Production levels decreased midway through the first quarter, although the rate of contraction held steady."

Chief HCOB economist Cyrus de la Rubia said the eurozone's one-year industrial recession "is not coming to an end. Output has declined again at the same pace as the previous month, mainly due to the heavyweights Germany and France".

"Spain, by contrast, is the first of the leading four euro countries to re-enter growth territory. On a slightly more positive note, the decline in new orders in the eurozone has softened somewhat, offering a glimmer of hope for a potential demand recovery in the future."

Reporting by Frank Prenesti for Sharecast.com