Manufacturing activity in many European countries continues to decline and in some of them has reached a multi-year low, according to the Supply Managers Index (PMI), presented by the Standard and Poor’s Global agency, DPA reported.
In Great Britain in October, the decline continued at the fastest pace since October 2020, reaching 46.2 from September’s 48.4, according to the data. Any number below 50 means the economy is contracting.
New orders have contracted more rapidly since May 2020 under pressure from a weak domestic market, while the overseas market is also underperforming. As a result, there was a decline in employment, purchasing activity and trade optimism among producers in October.
The image is similar in Netherlands. The decline in production continued into October, with new orders, exports, production and consumption falling at an accelerating pace, according to data from Standard & Poor’s Global.
The PMI fell to 47.9 from 49 in September. It was at a similar level in July 2020, at the end of the first pandemic blockade. Producers saw a sharp decline in demand in October, due to economic uncertainty and high energy prices. The decline is the most severe since 2009, excluding the first half of 2020.
TO Sweden in October, production activity contracted for the third consecutive month, according to Swedbank data. The PMI fell to 46.8 from 48.9 in September. According to analyst Jørgen Kennemar, the increasingly weak global economy is negatively affecting the development of the Swedish economy.
The manufacturing sector in the Czech Republic contracted at the fastest pace of the past two and a half years in October due to weak demand and a sharp decline in production, according to data from Standard & Poor’s Global. The PMI fell sharply to 41.7 from 44.7 in September. The decline in demand from European markets, which are the main ones for the Czech Republic, are the main reasons for the decline, writes BTA.
The picture looks the same inside Greece. The seasonally adjusted PMI fell to 48.1 from 49.7 in September. Although moderate compared to other countries, the decline was the most severe in Greece since December 2020 and the second fastest in nearly two years. And the reasons are the same: weak demand, falling new orders, high energy prices and runaway inflation.
