Economics

Euro-Area Factories See Biggest Order Slump in Almost Six Years

  • Manufacturing PMI slides to 49.3, led by Germany and Italy
  • Forward-looking indicators suggest risks tilted to downside
Little Evidence of Euro-Zone Growth Accelerating, UBS Says
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Euro-area factories suffered their biggest drop in orders in almost six years in February amid mounting concern over trade tariffs and Brexit, dealing a blow to those anticipating a speedy rebound in momentum.

Led by Germany and Italy, manufacturing output in the 19-nation region contracted last month, with a Purchasing Managers’ Index falling to 49.3. Companies continued to report spare capacity and inflation pressures eased to levels last seen in late 2016.