Eurozone Manufacturing Index Hits Fifteen-Month Low

05 May 2003

There remains no sign of recovery in the Eurozone’s manufacturing sector.

The Reuters Eurozone Purchasing Managers Index slumped to a fifteen-month low of 47.8 in April, down from 48.4 in March and well below the 50.0 threshold between expansion and contraction.

April’s reading – the second consecutive month the index has been below 50.0 – dashes hopes of an immediate post-war rebound in the twelve-nation zone. As the data were collected between April 14 and 25, the index reflects conditions immediately after the fall of Baghdad on April 9.

The index’s component measures fared as follows:

Output: Contracted for the first time in seven months, the index dropping from 50.4 in March to 49.4.

New orders: Down for the second successive month, posting the fastest rate of decline since January 2002 as sales remained sluggish both to Europe and to the rest of the world.

Raw materials: Manufacturers cut the amount of raw materials they purchased at the fastest rate in fifteen months.

Input prices: Rose for the thirteenth successive month, though the index fell slightly from 59.7 in March to 56.2.

Employment: Declined for the twenty-third month in a row, though the rate of contraction slowed marginally from 46.0 in March to 46.2.

Data sourced from: NTC Research; additional content by WARC staff