{"id":69287,"date":"2026-06-14T20:10:07","date_gmt":"2026-06-14T20:10:07","guid":{"rendered":"https:\/\/www.europesays.com\/europe\/69287\/"},"modified":"2026-06-14T20:10:07","modified_gmt":"2026-06-14T20:10:07","slug":"euro-zone-factories-see-jump-in-input-costs-supply-snags-survey-shows-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/europe\/69287\/","title":{"rendered":"Euro zone factories see jump in input costs, supply snags, survey shows"},"content":{"rendered":"<p>LONDON, April 1 (Reuters) &#8211; Euro zone manufacturers faced soaring input costs and supply chain disruptions in March due to <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/iran\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">the Iran war<\/a>, even as \u200bunderlying tepid demand threatened to undermine the sector&#8217;s fragile recovery, a \u200csurvey showed.<\/p>\n<p>The conflict in the Middle East has disrupted global logistics networks, causing delivery delays and pushing input price inflation to its highest levels since October 2022, distorting headline growth measures.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/europe\/euro-zone-factory-growth-hits-45-month-high-amid-supply-disruptions-pmi-shows-2026-04-01\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Feurope%2Feuro-zone-factory-growth-hits-45-month-high-amid-supply-disruptions-pmi-shows-2026-04-01%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>A \u200bjump in the cost of manufacturing, driven by higher oil and energy \u200bprices, led manufacturers to respond by raising selling prices at the \u2060fastest pace in just over three years.<\/p>\n<p>&#8220;It&#8217;s exactly the same as during \u200bthe pandemic &#8211; this is a supply shock &#8211; normally longer delivery times are associated with \u200btoo much demand in a really healthy environment but in a supply shock it falsely elevates the PMI,&#8221; said Chris Williamson, chief business economist at S&amp;P Global.<\/p>\n<p>&#8220;It does falsely elevate the \u200bPMI so conditions would be worse than the headline PMI indicates,&#8221; he also \u200bsaid.<\/p>\n<p>The S&amp;P Global euro zone Manufacturing Purchasing Managers&#8217; Index rose to 51.6 in March from 50.8 \u200cin \u2060February, higher than a preliminary estimate of 51.4.<\/p>\n<p>A reading above 50.0 indicates growth in activity.<\/p>\n<p>The new orders sub-index &#8211; a key gauge of demand &#8211; matched February&#8217;s 46-month high but growth remained modest.<\/p>\n<p>Production rose for a third consecutive month, with the output sub-index \u200bedging up to \u200b52.0 from 51.9 \u2060in February, marking a seven-month high.<\/p>\n<p>New export orders stabilised after contracting for eight straight months, providing some relief to manufacturers.<\/p>\n<p>Backlogs \u200bof work increased for the first time since mid-2022, signalling capacity \u200bpressures, \u2060yet companies cut jobs at a faster rate in March.<\/p>\n<p>Business confidence slipped to a five-month low and remained below its long-term average as the conflict weighed on sentiment.<\/p>\n<p>Germany and \u2060Italy \u200brecorded their strongest readings in 46 and 37 \u200bmonths respectively, while Spain was the only country in contraction territory. Greece posted the highest reading, followed \u200bby Ireland, while France&#8217;s manufacturing sector stagnated.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Jonathan Cable; Editing by Hugh Lawson<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"LONDON, April 1 (Reuters) &#8211; Euro zone manufacturers faced soaring input costs and supply chain disruptions in March&hellip;\n","protected":false},"author":2,"featured_media":69288,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2480],"tags":[11318,3431,11321,11327,3433,11329,3449,11340,3454,11339,11331,3458,11344,3452,11351,3456,11334,11347,11341,11332,3451,11345,11343,11349,3464,3460,3462,11336,3455,11337,3450,3459,11333,11338,11348,11346,11335,11342,3457,38722,2803,8828,3435,11316,3447,38720,39,38723,2487,2486,3446,2485,3448,8831,3436,11330,3439,38721,11352,8829,8830,3441,13423,3442,11323,11324,11325,3445,11319,11317,34973,11326,3425,11320,11328],"class_list":["post-69287","post","type-post","status-publish","format-standard","has-post-thumbnail","category-euro-zone","tag-apoll","tag-bru","tag-bsent","tag-ceeu","tag-cen","tag-de","tag-destabx","tag-destafa","tag-destbnx","tag-destc","tag-destcsa","tag-destd","tag-destdnp","tag-deste","tag-destef-markets-macromatters","tag-destfun","tag-destg","tag-destgns","tag-destgro","tag-destlby","tag-destm","tag-destmtl","tag-desto","tag-destoil","tag-destortao","tag-destoukbsm","tag-destousbsm","tag-destpge","tag-destpsc","tag-destptd","tag-destrast","tag-destrbn","tag-destreulb","tag-destrnp","tag-destrws","tag-destrwsa","tag-destsof","tag-destu","tag-destucdptest","tag-destuki","tag-ecb","tag-eci","tag-eco","tag-efmarkets-macromatters","tag-emea","tag-es","tag-eu","tag-eur-pmim","tag-euro-area","tag-euro-zone","tag-europ","tag-eurozone","tag-ez","tag-ezc","tag-fin","tag-fr","tag-gen","tag-gr","tag-ilei","tag-infl","tag-int","tag-intag","tag-it","tag-mce","tag-mplt","tag-news1","tag-pmi","tag-pol","tag-rep","tag-rpoll","tag-seeu","tag-topcmb","tag-topicmarkets-europe-ecb","tag-topnws","tag-weu"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/69287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=69287"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/69287\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/69288"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=69287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=69287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=69287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}