According to data released today by IHS Markit Economics, a London-based global information provider, the manufacturing sector purchasing managers' index (PMI) in the Eurozone fell by 0.1 percent in September compared to the previous month, to 58.7 points, slightly below market expectations of 58.6 points.



Looking at the details of the report published by Markit Economics, it was noted that during this period, strong growth in manufacturing activity was observed in the Eurozone due to significant growth rates in production, new orders and employment. However, it was noted that there has been a slowdown in recent months due to new variants of the coronavirus. In particular, the loss of momentum in the last month was recorded as the largest margin of decline since April 2020.

Austria, the Netherlands, Ireland, Italy and Germany, respectively, showed the strongest improvement among the Eurozone members in September. At the same time, the expansion in manufacturing conditions was observed only in Austria, while the loss of momentum was the highest in Germany.

On the other hand, after the sharp increase rates seen in the previous months, the slowest growth since January was reported in new export orders. Supply chain disruptions were the biggest obstacle to manufacturing activities throughout September, with foreign demand conditions being another contributing factor. 

The report, which emphasized that supplier delivery times were significantly extended in September, pointed out supply bottlenecks, a shortage of containers and logistics problems that have arisen in some parts of Asia. Underlining that these supply chain problems have become apparent in inventories, IHS Markit also stressed that inflationary pressures in manufacturing continue.

The report noted that although cost pressures were at their weakest increase for 5 months, they were at their highest levels for about 24 years, adding that Eurozone manufacturers were increasing output prices faster than in August in order to maintain profit margins. Finally, report informed that business confidence among manufacturers has partially increased, but it is still at nine-month lows.