Eurozone factory activity recovering but tariffs a threat - PMI
By Frank Prenesti
Date: Tuesday 01 Apr 2025
(Sharecast News) - Manufacturing in the eurozone showed signs of pulling out of its long-running slump last month, although US tariffs posed a new threat, according to a survey published on Tuesday,
A final reading of HCOB's final purchasing managers' index for the sector hit 48.6 in March, a touch below a flash estimate of 48.7, but its highest level for more than two years and close to the 50 mark separating growth from contraction.
The output Index jumped into expansion territory at 50.5 from Feb: 48.9 - a 34-month high.
"Things are looking up. The PMI has increased for the third month in a row and the output index even surpassed the threshold for growth," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"A significant part of this movement may have to do with the front loading of orders from the US ahead of the tariffs, which means some backlash is to be expected in the coming months."
"However, given the geopolitical developments, there is also increasing speculation that the defence sector will expand significantly over the next few years, with direct and indirect positive effects on the industry."
US President Donald Trump is set to unveil a raft of tariffs on Wednesday after implementing levies on aluminium, steel, autos and related parts, along with increased tariffs on all goods from China.
Reporting by Frank Prenesti for Sharecast.com
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