Europe/PMI: Difficulties in supply and deterioration in demand in industry


(Reuters) – Key final results, released on Monday, of S&P Global’s surveys of manufacturing purchasing managers in Europe:

* GERMANY – TENSIONS INCREASE, DEMAND WEAKENS

BERLIN – Worsening supply difficulties and slowing demand weighed on German manufacturing activity in April and its outlook is deteriorating with the war in Ukraine and health lockdowns in China, the survey shows. S&P Global.

The German manufacturing PMI fell to 54.6 from 56.9 in March. It is however higher than the “flash” estimate published during the month, which had given it at 54.1.

Output in the sector fell for the first time since the first lockdown of 2020 and the survey suggests demand for manufactured goods is slowing, notes Phil Smith, associate chief economics officer at IHS Markit.

* FRANCE – SLIGHT IMPROVEMENT BUT CONCERN FOR THE FOLLOW-UP

PARIS – Growth in the French manufacturing sector accelerated slightly in April, but this trend may not last due to inflationary pressures and the war in Ukraine.

The sector’s S&P Global PMI rose to 55.7 from 54.7 in March. The latter figure marked a 19-month low. It exceeds the first estimate which gave it at 55.4 but remains below its historical average.

Businesses surveyed reported an increase in new orders as their customers anticipate further price increases and supply issues.

“This is concerning and suggests that inflation expectations are no longer anchored,” S&P Global economist Joe Hayes said in a statement, adding that the index’s rally could be “short-lived.” and that demand could quickly deteriorate.

* ITALY – GROWTH IS SLOWING

ROME – Growth in Italy’s manufacturing sector fell to its lowest level since December 2020, with companies citing supply problems, longer delivery times and slowing demand.

The sector’s S&P Global PMI index fell to 54.5 from 55.8 in March.

The new orders sub-index fell to 52.5 from 54.6.

(Reuters offices, French version Marc Angrand, editing by Jean-Michel Bélot)

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