March overall PMI: SA 51.2
Feb. overall PMI: SA 52.3
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MNS Survey Median for March. PMI: SA 51.8
MNS Survey Range for March. PMI: SA 51.0 to 52.2
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March price index: SA 53.5
Feb. price index: SA 55.8
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FRANKFURT (MktNews) - The purchasing managers' index for the eurozone fell for the 11th month in a row in March, hitting its lowest level since March 1999 and indicating that the pace of manufacturing sector growth continues to slow.
At the same time, the PMI input price index fell sharply in March, .
The seasonally adjusted PMI manufacturing activity index, based on data from seven EMU countries, fell to 51.2 in March from 52.3 in February. The reading was at the low end of forecasts in a Market News International survey of 25 analysts (median: 51.8).
The activity index has declined every month since reaching a peak of 60.7 in April last year, although the March figure shows that the economy continued to grow, albeit at a slower pace.
In the process, the index moved closer to the break-even point between economic expansion and contraction. An index level above 50 indicates that the manufacturing sector is expanding, while a level below 50 indicates contraction. The higher the index above 50, the stronger sector growth.
The prices index, which is not part of the overall PMI, fell to 53.5 in March from 55.8 in February. The latest figure was the lowest reading since June 1999 and the sixth straight monthly decline following the latest peak of 75.9 in September last year.
Among components of the manufacturing activity PMI, the output subindex fell to 52.5 in March from 54.1 in February. The latest reading was the lowest since March 1999.
The new orders index also fell in March, declining to 50.9 from 52.9 in February. This was also the lowest level since March 1999.
Manufacturing employment continued to grow, but at a slower pace, with the index falling to 51.3 from 51.7 in February. Delivery times decreased in March, with the index up to 49.9 from 48.7 in February. This signals that the inventory level in some sectors is weaker than before, which might create room for an eventual upturn of the economy after it has bottomed out.
Stocks of purchases rose to 50.4 in March from 49.2 in February. In January, the index fell below 50 for the first time since Jan. 2000.
The eurozone PMI is based on results from Germany, France, Italy, Spain, Ireland, Austria and Greece and is published by .
Overall, there can be little doubt that a significant slowdown in the eurozone economy is in progress in a contagion reaction to the U.S. slump. At the same time, price side pressures are clearly easing in the eurozone, although not that significantly yet.