S&P Global Market Intelligence Chief Business Economist Chris Williamson Comments on Euro Zone Manufacturing PMI Data

Euro zone manufacturing remains struggling, with factories reporting an 11th straight month of decline in demand for goods amid soaring living costs, tighter monetary policy, a shift to destocking and subdued customer confidence.

Fortunately, record improvements in supplier lead times and higher available input costs have allowed companies to fulfill orders placed in previous months, meaning output has been largely flat over the past two months. However, current production levels are clearly unsustainable and unless order growth resumes, production will inevitably decline in the coming months.