EZ manufacturing still in doldrums after March PMI fall

Eurozone manufacturing activity fell last month compared with February as demand across the single-currency block continued to fall, according to a survey published on Tuesday.

The final HCOB eurozone manufacturing purchasing managers’ index (PMI), slipped to 46.1 in March from February’s 46.5 and a preliminary estimate of 45.7. A mark below 50 indicates contraction.

In a slight not of optimism, the PMI output index at rose to 47.1 from February's 46.6) - an 11-month high.

"It’s a bit disheartening: over the last eight months, the manufacturing industry has been gradually climbing the Output PMI ladder, but it still finds itself on the basement staircase," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

"However, progress to the next floor has yet to materialise, largely owing to the underperformance of the German and French industries," said. Given this, it comes as no surprise that our GDP nowcast model, incorporating PMI data, predicts a continuation of the recession in the manufacturing sector of the eurozone."

Reporting by Frank Prenesti for Sharecast.com