A sharp decline in manufacturing activities in the Eurozone

According to Tasnim news agency, citing Rashatoudi, according to the results of a recent study by S&P Global Institute, production activities in 20 countries that use the euro currency continued to decrease, the main reason for which was the decrease in the growth of the first economy in this region, Germany. .

The report said that the Purchasing Managers' Index (PMI) for the manufacturing sector of the Eurozone fell to 46.5 in February from 46.6 in January.

Although this figure is higher than the initial figures published, i.e. 46.1 units, but at the same time, it is lower than the figure of 50, which is the dividing line between growth and contraction of economic activity, and shows a decrease for the 20th consecutive month.

Total factory output across the eurozone continued to decline last month, with the rate of contraction largely unchanged from January, S&P Global wrote. Nevertheless, Eurozone manufacturers were able to fulfill orders pending completion on time.

Cyrus de la Rubia, chief economist at Hamburg's commercial bank, said about the data: “The euro zone's year-long industrial recession is not over.” Production fell again at the same pace as last month, mainly due to heavyweights Germany and France.

According to this report, the German economy recorded its worst situation in the last four months in February.

Separate research published by S&P Global in recent days shows that manufacturing activity in Germany was much lower than expected last month, suggesting a rapid slowdown in economic growth.

De la Rubia went on to say that last month's very small decline in commodity prices in the eurozone is unlikely to have been entirely due to tensions in the Red Sea, but rather a recent rise in the price of some commodities, such as oil.

In the end, this economist said: the basic process of reducing demand, which is the main driver of faster delivery (of goods), continues.

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