Manufacturing PMI in the Euro Area down to 15-month low

Business activity in Euro Area's manufacturing sector kept decelerating in April, but stayed above 50, meaning that it is still expanding. The S&P Global Manufacturing Purchasing Managers' Index (PMI) decreased to 55.3 from 56.5. This is the third straight month in which the indicator declines and the lowest level since January 2021. 

The data breakdown reveals that employment improved in April, with the corresponding indicator inching up to 55.2 following 54.5 in March. The suppliers delivery times component rebounds again after plunging in the previous month, as businesses were digesting the impact of the war in Ukraine. It increased to 27.4 from 25.1, attempting again to establish the upward trend. This sub-indicator, which is still at historically low levels, reflects the supply chains disruptions, observed globally since the start of the pandemic.

Input and output prices are on the rise, suggesting continued inflationary pressures, resulting from both the supply chain crunch and the elevated energy prices.

The PMI index has a threshold level of 50, which divides contraction from expansion.

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Read more in the quarterly report Euro Area Economy in a Snapshot - Q1 2022