Eurozone manufacturing output falls at sharpest pace as demand sinks

ANKARA

Eurozone manufacturing output in October fell at its sharpest pace since the pandemic, as demand for goods sank, with geopolitical uncertainty, high inflation, and weaker economic conditions around the world putting a dent in people's spending.

The manufacturing Purchasing Managers’ Index (PMI) plunged to its lowest level since May 2020, dropping to 46.4 in October from 48.4 in September, data released by US-based financial services firm S&P Global showed on Wednesday.

Commenting on the final Manufacturing PMI data, Joe Hayes, senior economist at S&P Global Market Intelligence, said: "The eurozone goods-producing sector moved into a deeper decline at the start of the fourth quarter. The PMI surveys are now clearly signaling that the manufacturing economy is in a recession."

"Developments in the energy markets will remain a key focus for euro area manufacturers through the winter. The spate of mild weather across Europe so far bodes well and has helped bring wholesale gas prices down,” he said.

He added: “However, we remain mindful of the risk that atypical cold weather could ramp up the need for energy rationing, causing widespread disruption to manufacturing production.”