The industrial sector in the eurozone collapsed last April with governments imposing measures to stop the spread of the Corona virus, forcing factories to close and consumers to stay in their homes. According to ArabiaNet, the final reading of the IHS Market index of purchasing managers in the manufacturing sector in the euro zone fell to 33.4 in April from 44.5 in March is the lowest since the survey began in mid-1997 and is below the initial reading of 33.6. The 50-point level separates growth and contraction. It is an indicator that measures production, and feeds the PMI compilation that is released on Wednesday and is seen as a measure of the health of the economy, to the lowest level in the survey date, recording 18.1 from 38.5 . "The euro zone industrial sector fell in April at a pace that exceeded any previous drop in the history of PMI surveys for 23 years," said Chris Williamson of IHS Market, the euro zone in April, at a pace that exceeded any previous drop in the history of PMIs for 23 years. This is due to factors including widespread factory closures, declining demand and a lack of supplies, all linked to the Covid-19 outbreak. The decline came despite the European Central Bank’s monetary easing policy and unprecedented fiscal stimulus from governments to help the pandemic-hit economy. With stores closed and consumers worried about their health and future of jobs, demand fell last month to the lowest level ever on the survey date.
The new orders were recorded at 18.8, about half of the weak reading for March of 37.5.
