Eurozone Manufacturing Activity Shrinks At Slower Pace

RTTNews | 61 days ago
Eurozone Manufacturing Activity Shrinks At Slower Pace

(RTTNews) - Euro area factory activity contracted at a slower pace in April as production grew at the fastest pace in more than three years, final data of the purchasing managers' survey by S&P Global showed Friday.

The HCOB manufacturing Purchasing Managers' Index rose to a 32-month high of 49.0 in April from 48.6 in March. The score was also above the flash estimate of 48.7.

"A fourth consecutive increase in the HCOB PMI can be seen as a sign that the situation in the manufacturing sector is stabilizing," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

"Industrial activity remains highly exposed to US tariff policy, but the planned sharp increase in defence spending in the EU could help stabilize the situation in the long term," de la Rubia added.

Manufacturing production grew the most in just over three years in April. New orders shrunk slightly in April as export demand, which was the main drag on sales, fell the least since April 2022.

Purchasing activity dropped further, as did stocks of pre-and post-production items. Meanwhile, firms' expectations for growth eased with confidence falling to its lowest in the year-to-date period.

Meanwhile, manufacturers reduced their headcounts further in April though the rate of decline was the softest in ten months.

Backlog reductions were still possible despite sustained workforce cuts. The pace at which outstanding orders were cleared even quickened to its sharpest for three months, the survey showed.

On the price front, the survey revealed that input costs dropped for the first time since last November. However, prices charged for goods were aggressively raised at the fastest pace in two years.

Among the big-four economies, Germany, France and Italy posted softer reductions in factory activity than in March. Meanwhile, Spain registered a quicker decline in April.

German manufacturing contracted at the slowest pace in more than two-and-a-half years in April. The HCOB final factory PMI registered 48.4, up from March's 48.3 and above the flash reading of 48.0.

France's manufacturing sector displayed tentative signs of a recovery in April. The HCOB final PMI edged up to 48.7 from 48.5 in March and also above the flash estimate of 48.2. The pace of deterioration was the slowest in over two years. Italy's manufacturing downturn was less severe than earlier in the year. The factory PMI climbed more-than-expected to 49.3 in April from 46.6 in the previous month. The reading was seen at 47.1. The score signaled the softest fall in operating conditions in eight months.

The downturn in Spain's manufacturing economy continued in April. The HCOB factory PMI declined unexpectedly to 48.1 in April from 49.5 in March. The score was forecast to rise to 50.0.

read more
Eurozone Inflation Hits ECB Target

Eurozone Inflation Hits ECB Target

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.
RTTNews | 1 day ago
Eurozone Manufacturing Sector Contraction Slows In June

Eurozone Manufacturing Sector Contraction Slows In June

Eurozone manufacturing activity contracted at a slower pace in June as output showed a sustained expansion and total new work stabilized ending a 37-month period of decline, final survey data from S&P Global showed on Tuesday. The HCOB manufacturing Purchasing Managers' Index posted 49.5 in June, up from 49.4 in May. This was the highest score since August 2022.
RTTNews | 1 day ago
Eurozone Household Lending Grows Most In 2 Years

Eurozone Household Lending Grows Most In 2 Years

Lending to euro area households grew the most in two years in May and overall private sector credit growth remained stable, data from the European Central Bank revealed on Monday. Adjusted loans to households increased 2.0 percent year-on-year in May, the strongest since May 2023, when it was up 2.1 percent. Meanwhile, loans to businesses grew 2.5 percent from a year ago.
RTTNews | 2 days ago
Eurozone Economic Sentiment Falls Unexpectedly

Eurozone Economic Sentiment Falls Unexpectedly

Eurozone economic sentiment weakened unexpectedly in June primarily driven by reduced confidence in industry and retail trade, a monthly survey data from the European Commission showed on Friday. The economic confidence index fell to 94.0 in June from 94.8 in May. The score was forecast to rise to 95.1. The industrial confidence index posted -12.0 in June, down from -10.4 a month ago.
RTTNews | 5 days ago
French Inflation Accelerates In June

French Inflation Accelerates In June

France's inflation accelerated more than expected in June largely due to higher services costs but the overall rate remained below the 2 percent target, preliminary estimate from the statistical office INSEE showed on Friday. Consumer prices increased 0.9 percent year-on-year in June, faster than the 0.7 percent rise in May. The rate was forecast to remain unchanged at 0.7 percent.
RTTNews | 5 days ago
German GfK Consumer Confidence To Drop In July

German GfK Consumer Confidence To Drop In July

German consumer confidence is set to drop in July after rising for three straight months as rising willingness to save offset the positive impetus provided by improved income prospects. The forward-looking consumer sentiment index fell unexpectedly to -20.3 in July from -20.0 in the previous month, a survey jointly published by the market research group GfK and the Nuremberg Institute for Market
RTTNews | 6 days ago
German Ifo Business Confidence Strongest In 13 Months

German Ifo Business Confidence Strongest In 13 Months

German business confidence rose to the highest level in 13 months in June driven by improving hopes that fiscal measures will underpin economic recovery, a closely watched survey showed on Tuesday. The business climate index registered 88.4 in June, up from 87.5 in May, the Munich-based ifo Institute revealed. This was the highest level since May 2024, when the reading was 88.9.
RTTNews | 8 days ago