Eurozone factory input costs already rising due to Iran war - PMI

(Sharecast News) - Factory input costs in the Eurozone have already started to rise as a result of the US-Israel war on Iran, a survey revealed on Wednesday. The S&P Global euro zone Manufacturing Purchasing Managers' Index rose to 51.6 in March from 50.8 in February, higher than a preliminary estimate of 51.4. A reading above 50.0 indicates growth in activity.

"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."

The new orders sub-index matched February's 46-month high, but growth remained modest. Production rose for a third consecutive month, with the output sub-index edging up to 52.0 from 51.9 in February, marking a seven-month high.

Reporting by Frank Prenesti for Sharecast.com