According to a report from S&P Global and Hamburg Commercial Bank (HCOB), the European industry is facing challenges, with the decline in manufacturing production PMI in the Eurozone reaching its worst figure in three months. This decline is attributed to contractions in the economies of Germany and France, which are two of the largest economies on the continent. However, there have been slight improvements in other countries such as Greece, Spain, and Italy.
Despite this overall decline, there has been a silver lining as the Eurozone manufacturing production PMI had its best reading in 11 months in March. This indicates that the sector is not yet in recession. The slowing down of new orders is partially offset by lower burdens on international markets.
The Spanish industry is also struggling with a 1.6% decrease in turnover in manufacturing activity. This decline, which is one of the largest over a decade without considering pandemic year, is attributed to economic cooling, rising raw material costs, and geopolitical uncertainty. Entrepreneurs are looking to investment in digitalization and green transition to overcome stagnation in the sector.
The industry’s crisis is not unique to Spain and mirrors challenges faced by other countries such as Germany being in recession due to several factors affecting their economies. Despite these challenges, there is optimism for recovery and growth through strategic investments and innovation that could help companies overcome stagnation and improve their competitiveness globally.
