Eurozone’s PMI Manufacturing was finalized at 45.0 in September, down from 45.8 in August, marking a 9-month low and reflecting further deterioration in the region’s manufacturing sector. Germany posted the weakest performance with a 12-month low PMI of 40.6, while Spain led with a 4-month high of 53.0.
According to Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, Eurozone industrial production is expected to decline by around -1% in Q3, with further contractions likely by year-end as new orders continue to fall sharply.
While lower oil and gas prices helped reduce input costs in September, de la Rubia warned that this relief could be temporary given ongoing geopolitical risks in the Middle East, which may lead to another spike in energy prices.
Adding to the challenges, supply-chain disruptions have worsened, despite weakening demand. For the first time since February, businesses reported longer wait times for goods, indicating that geopolitical tensions are affecting both supply chains and production across the Eurozone.
