Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Top Stories

Euro zone factory activity declined again in Sept as energy bills bite -PMI

Euro zone factory activity declined again in Sept as energy bills bite -PMI 1

LONDON (Reuters) – Manufacturing activity across the euro zone declined further last month as a growing cost of living crisis kept consumers wary while soaring energy bills limited production, a survey showed on Monday.

S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to a 27-month low of 48.4 in September from August’s 49.6, just below a preliminary reading of 48.5 and further below the 50 mark separating growth from contraction.

An index measuring output, which feeds into a composite PMI due on Wednesday and seen as a good guide to economic health, dropped to 46.3 from 46.5, marking its fourth month of sub-50 readings.

“The ugly combination of a manufacturing sector in recession and rising inflationary pressures will add further to concerns about the outlook for the euro zone economy,” said Chris Williamson, chief business economist at S&P Global.

“Excluding the initial pandemic lockdowns, euro zone manufacturers have not seen a collapse of demand and production on this scale since the height of the global financial crisis in early 2009.”

There is a 60% chance of a recession in the bloc within a year, a Reuters poll found last month, and forward-looking indicators in the PMI also painted a gloomy picture.

Demand fell at the fastest rate since around the time the coronavirus pandemic was sweeping across the world, backlogs of work were run down while stocks of unsold finished products increased as factories raised prices to meet rising costs.

That meant optimism declined and the future output index, which assesses the outlook of purchasing managers about the year ahead, went into rapid decline. It plummeted to 45.3 from 52.7, its lowest reading since May 2020.

“The combination of rising costs and slumping demand has also pushed firms expectations for the year ahead sharply lower again in September, leading in turn to reduced input buying and lower jobs growth as firms prepare for a tough winter,” Williamson said.

(Reporting by Jonathan Cable; Editing by Hugh Lawson)

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now