Uncertainty caused by the invasion combined with an intensifying cost-of-living crisis suggests the bloc's manufacturing industry could slide into a recession this quarter.
This was below an initial"flash" estimate of 57 but still well above the 50 mark that separates growth from contraction. "Just as the fading of the latest pandemic wave was creating a tailwind for the euro zone manufacturing recovery, with economies reopening and supply chain bottlenecks easing, the war in Ukraine has created an ominous new headwind," said Chris Williamson, chief business economist at S&P Global.
Overall demand growth weakened as factories, facing soaring input costs, increased prices at the fastest rate since S&P Global began collecting the data in 2002. Export orders, which includes trade between member countries, declined for the first time since June 2020.