European factories struggled in February as the outbreak of the coronavirus caused supply chain disruptions due to factory shutdowns in China.
The final manufacturing PMI remained in contraction as it registered 49.2, compared to both preliminary and median forecasts of 49.1. However, the reading signaled an improvement from January’s 47.9.
“Supply chains are lengthening to an extent not seen since 2018 and inventories are being depleted at a rate rarely seen over the past decade as companies struggle to produce enough to satisfy order books,” said Chris Williamson, chief business economist at IHS Markit.
U.K. manufacturers also suffered from the same problem, which led the manufacturing PMI to be revised lower to 51.7 last month from a preliminary of 51.9.
“Average vendor lead times lengthened to the greatest extent since July 2018, while the eight-point drop in the level of the seasonally adjusted Suppliers’ Delivery Times Index was the largest in the 28-year survey history,” HIS Markit said.
As of 10:11 GMT, the
EURGBP extended its rise for a fourth straight session to 0.8678, after hitting
its highest since October 17, 2019 at 0.8686.