The final February reading of the IHS Markit Eurozone Manufacturing PMI® was 49.2, up from January’s 47.9 and slightly up on the February flash figure. This represented a one-year high reading: however, supply constraints could be seen to be emerging.
Output and new orders both declined at slower rates in February but average lead times lengthened and companies reported their inventories were eroding. The investment goods manufacturing sector registered the weakest performance, followed by intermediate goods.
Greece continued to top the leader board with a reading of 56.2. The Netherlands (52.9), Ireland (51.2), Spain (50.2) and Austria (50.2) all returned positive PMI readings above the 50 no-change mark. France recorded a seven-month low reading, slipping back into contraction (49.8). Italy read 48.7 and German continued to foot the table with a stronger reading of 48.0.
Supply chain constraints were linked to the Chinese coronavirus outbreak with purchasing inputs falling for the fifteenth consecutive month. Input inflation weakened but at the slowest rate in eight months. However, output charges were at their lowest level in nearly four years as companies grappled with weak sales demand and strong competition.