By Tuba Sahin
ANKARA (AA) - Germany's manufacturing Purchasing Managers' Index (PMI) fell to an 18-month low in March amid demand and supply shocks sparked by the Russia-Ukraine war, according to figures released on Friday.
While growth in the manufacturing sector decelerated with the PMI falling to 56.9 in March from 58.4 in February, expectations towards future activity also deteriorated, global data company IHS Markit reported.
After easing in recent months, supply delays worsened and the rate of input price inflation regained momentum.
For the first time since the initial global COVID outbreak, goods producers were pessimistic in their year-ahead outlook.
Phil Smith, economics associate director at S&P Global, pointed out the war is waning the growth in manufacturing sector and weakening business confidence.
"Manufacturers have been hit by dual supply and demand shocks. Fresh disruption to raw materials and key components has constrained production, while the war-related sanctions and heightened uncertainty in the market have dented export sales," Smith added.
He underlined that goods producers have been facing renewed pressure from rising input cost inflation driven by sky-rocketing global commodity prices.
"March survey data has shown a near-unprecedented drop in manufacturers' expectations for the year ahead, which not only bodes ill for the immediate growth outlook, but also for future job creation and investment," Smith stressed.