Eurozone manufacturing contraction deepens as firms cut output and new orders decline

Eurozone manufacturing contracted further as new orders and production volumes declined across major regional economies.

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Eurozone manufacturing contraction deepens as firms cut output and new orders decline

Eurozone manufacturing contraction deepens as firms cut output and new orders decline
Eurozone manufacturing activity weakened further in the latest monthly PMI release, signaling continued contraction across major economies such as Germany, France and Italy. Survey data revealed significant drops in new orders, production volumes and inventory replenishment, pointing to worsening demand conditions. Energy-intensive industries reported sharper declines due to elevated input costs and subdued export activity. Economists warn that prolonged manufacturing weakness may weigh on broader Eurozone growth, particularly if services activity also begins to soften. 
Policymakers are monitoring whether targeted stimulus or liquidity support will be required to stabilize sector momentum.