Eurozone Manufacturing Sector Hits Nine-Month Low

The eurozone manufacturing sector experienced a significant downturn in September, with the Purchasing Managers' Index (PMI) dropping to 45, marking the worst contraction since December 2023. This decline is characterized by sharp falls in new orders, output, and employment across major economies, particularly Germany, which recorded a PMI of just 40.6, indicating deepening industrial challenges. Despite Spain showing some growth with a PMI of 53, its influence on the overall eurozone economy remains limited due to the larger declines in Germany and France. Manufacturing activity in Greece also slowed, with its PMI falling to 50.3, suggesting a contraction influenced by weak demand and unfavorable weather. Experts predict a 1% drop in eurozone industrial production for Q3, with further declines anticipated as order volumes continue to fall. Inflation pressures appear to be easing, but geopolitical uncertainties could impact future price stability and economic recovery.