Eurozone Manufacturing Growth Plunges to 14-Month Low

Source: Markit Economics

Manufacturing growth in the eurozone plummeted to a 14-month low in March, dragged by the escalating tensions between Russia and Ukraine. EZU is down 0.86%, and VGK is up 0.91%.

• The Final Eurozone Manufacturing PMI stood at 56.5, down from 58.2. This is the lowest level since the start of 2021.
• The Final Eurozone Manufacturing Output Index plunged to a 21-month low of 53.1, down from 55.5 in February.
• The decline was attributed to the rise in geopolitical tensions, which in turn hit demand and business confidence.
• The biggest growth for the month was recorded in Ireland, followed by Austria, while the expansion slowed in the remaining eurozone constituents.
• Supplier delivery times lengthened as China’s COVID-19 cases and the conflict between Russia and Ukraine worsened the global supply bottlenecks.
• Employment growth slowed to the weakest since February 2021, with work backlogs up for the 12th straight month.