The manufacturing sector in the Eurozone achieved its highest level in over four years in September 2023, recording a PMI index of 52.9. This number increased from 52.7 in August and indicates significant growth in this economic sector. This statistic was particularly obtained as various countries in the Eurozone simultaneously witnessed improvements in production.
Growth in Production and New Orders
The production index for this month reached 53.6, indicating the highest level in a year and a half. Additionally, new orders increased at the highest rate since March 2022. This positive trend in exports also continued, and for the second consecutive month, we saw an increase in export orders, which is considered the first sustainable increase in over four years.
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Increase in Jobs and Purchasing Demand
In September, employment in the Eurozone manufacturing sector increased, breaking a three-year declining trend that had begun in July 2020. Additionally, backlogs of work increased for the first time since April 2023 and were carried out at the fastest pace in nearly four and a half years. Purchasing activities also rose at the second highest rate since May 2022. Pre-production inventories only slightly decreased, and delivery times from suppliers lengthened, although signs of improvement in this area are observed.
Price pressures intensified this month, with input costs and output prices rising for the first time since May 2023, although they remain at lower levels compared to the peaks earlier this year. This situation has particularly arisen following the onset of conflicts in the Middle East.
Business confidence among Eurozone manufacturers reached its highest level in the past seven months, significantly above the long-term average. These data were collected between September 10 and 23, 2023, and indicate a positive outlook for the manufacturing sector in the near future.
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