Eurozone PMI manufacturing was finalized at 56.6 in March, unrevised, down from February’s final reading of 58.6. It’s also the biggest fall in the series since June 2011. 
Markit noted broad slowdown across “all nations”. And there is increased signs of “supply chain constraints”.
Quote from the release:
Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
- “March saw the biggest fall in the manufacturing PMI since June 2011 and the third successive slowing in the pace of expansion.
- “We should not be too worried by the fall in the PMI as some moderation in the pace of growth from the surge seen at the turn of the year was inevitable, not least because short-term capacity constraints limit the economy’s ability to grow so quickly for long periods. This has been clearly evident in the recent lengthening of supply delivery times. Some of the slowdown has also been attributable to temporary factors such as bad weather.
- “However, the fact that business optimism about the coming year has slipped to a 15-month low suggests there are other factors that are now hitting factory order books. Export growth has more than halved since late last year, linked in part to the appreciation of the euro, and in some cases demand is being stymied by higher prices.
- “The overall pace of growth nevertheless remains robust by historical standards, with decent PMI readings seen in all countries, including Greece, to indicate a steady, broad-based expansion. Manufacturing should therefore make another substantial contribution to GDP growth in the first quarter, and the presence of sustained inflationary pressures will be welcomed by policymakers.”
Also released, Germany manufacturing PMI was revised down to 58.2, from 58.4. France manufacturing PMI was revised up to 5.37, from 53.6. Italy manufacturing PMI dropped to 55.1 in March, down from 56.8 and missed expectation of 55.5.
Swiss retail sales dropped -0.2% yoy in February, better than expectation of -0.7% yoy. SVME PMI dropped to 60.3, down from 65.5 and missed expectation of 64.3.
