London (Reuters) – The manufacturing industry in the euro zone posted in March first signs of a significant recovery, production in the sector that has increased for the first time in two years, according to a survey published on Tuesday.
This recovery could however be hampered by new American customs duties scheduled for Wednesday.
The final index of purchasing directors in the manufacturing sector of the euro zone established by HCOB and compiled by S&P Global rebounded at 48.6 in March, slightly below the preliminary estimate which was at 48.7.
The 50 bar separates growth and contraction of activity.
The sub-index measuring production, which feeds the composite PMI planned for Thursday, has increased from 48.9 to 50.5.
“The situation improves. The PMI index increased for the third consecutive month and the production index even exceeded the growth threshold,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
“An important part of this movement could be linked to the concentration of orders from the United States before the taxation of customs duties, which means that it is necessary to expect a certain backlash in the coming months”.
US President Donald Trump is expected to announce reciprocal customs duties in many sectors on Wednesday, after having imposed surcharges in aluminum, steel and cars, as well as increased customs duties on goods from China.
Industrialists are nevertheless optimistic about the coming year. The future production index dropped only very slightly, from 60.1 to 59.9, a level still above its long-term average.
(Written by Jonathan Cable; Claude Chendjou, edited by Blandine Hénault)
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