“The price of natural gas in Europe fell by 40%of the” European natural gas prices “released yesterday. Is the” bitter day “really passed? “In the article, we pointed out that the energy supply problem will bring great trouble to the euro zone manufacturing industry, unfortunately. Today, the Financial Times and the New York Times focused on the problem of significant decline in the production of factories in the euro zone. The Financial Times even directly predicts that during the rest of this year, the production of factory in the euro zone will continue to shrink and no hope of rebounding.
The EU Statistical Bureau said on Wednesday that the output of factories in 19 countries in the euro zone in July decreased by 2.3%compared with the previous month, the largest decline since April 2020. Economists have previously descended by 1%in an interview with Reuters, and the actual decline is more than twice the prediction. Among them, the output of energy -intensive factories fell the most seriously, with a decline of more than 4%. In the EU 28, Ireland performed the most bleak, and its factory output fell 18.9%, which was shocking.
In August, the latest data for the production of factory production in the euro zone has not yet been announced, but it must continue to fall, but the decline needs to be confirmed by the official data. This is the consensus of the academic and industry. It is based on the latest announcement of the euro zone manufacturing purchase manager PMI.
PMI is generally used by the economics and industry to monitor the manufacturing status, and is one of the international monitoring indicators. In simple terms, the PMI value is higher than 50, indicating that the scale of the manufacturing industry is expanding; the PMI value is lower than 50, which means that the scale of the manufacturing industry is shrinking. The latest data show that since July, the euro zone manufacturing PMI has fallen rapidly, and the index in July and August has been less than 50. The manufacturing industry is shrinking and the prospect is worrying.
The New York Times pointed out that there are two reasons for the continuous shrinking of the euro zone manufacturing industry:
First, market demand is decreasing. The downturn of the world economy is already a global consensus, and the lack of market confidence leads to the reduction of market demand will be a “normal”. At the same time, the EU mainly produces high value -added products such as machinery, automobiles, and electronic products. The demand for these products is much higher than other category products.
Second, insufficient energy supply and rising prices have limited factory production capacity and operating costs. We have a detailed explanation of this part of yesterday’s push. Friends who are interested can view it by themselves, and I won’t go into details here.
The EU has just resolved the problem of life of the people, and this severe manufacturing crisis has emerged. The room leak was overnight, and the boat was late. The road to recovery in the European Union is still obstructive.
Post time: Sep-16-2022