(Il Sole 24 Ore Radiocor) - Milano, 1 apr - In March, the eurozone's purchasing managers' index (PMI) for the manufacturing sector increased to 51.6 in March from 50.8 in February, reaching a 45-month high, according to data released by S&P Global.

Meanwhile, the manufacturing PMI output rose to a seven-month high of 52.0, up from 51.9 in February.

A reading above 50 signals expanding sector activity while one below a contraction.

S&P Global noted despite the improved readings suppliers' delivery times lengthened to the greatest extent in over three-and-a-half years and input cost inflation soared.

"The war in the Middle East has already left its mark on euro area manufacturing. Suppliers' delivery times have risen sharply as logistics markets re-adjust to maritime disruption, while surging oil and energy prices have pushed factory input cost inflation up to its highest level since late-2022," said Joe Hayes, principal economist at S&P Global Market Intelligence.

"The frustrating part is that the manufacturing sector had been slowly gaining momentum since the start of 2026, aided by generally muted cost pressures in recent years which have helped goods producers keep a lid on their charges. However, we saw some of the war-driven inflation impulse being passed straight through to final prices in March, reducing the eurozone's competitiveness and this will likely put demand under renewed pressure.

"While factory production and order growth rates held steady in March, expansions were tepid. It therefore might not take too much to bring output and sales volumes lower, and such a.

risk clearly rises the longer the war carries on."

(RADIOCOR) 01-04-26 10:24:05 (0238) 5 NNNN