Germany's factories, which power Europe's economy, produced less during September than at any time in the past two years, which experts say could be an indicator of an approaching European recession (经济衰退).
The S&P Global Manufacturing Purchasing Managers' Index, or S&P Global PMI, found that Germany's manufacturing activity dropped to 47.8 in September, from 49.1 in August. The survey said the drop in factory output was due to customers either putting off or canceling orders because of fast-rising prices caused by more expensive fuel bills.
Joe Hayes, a senior economist at S&P Global, said while the whole world is in the middle of a manufacturing decline, Europe appears to be at the slowdown's center. "Production fell at a rate which has only been larger during crisis periods," Hayes told The Telegraph. "New orders also fell at a rapid pace, reflecting the hesitancy among clients to buy goods at expensive prices."
The analysis also showed that Europe's other manufacturing powerhouse, France, is struggling to remain competitive. The S&P Global PMI said French companies' order books shrank during September, with around one-third of businesses reporting customers had canceled orders because of rising prices.
Phil Smith, an associate director at S&P Global, said Europe is experiencing "a continuous downturn". He added that producers had been "coming under pressure from a deepening drop in demand as well as an energy-led rise in cost inflation (通货膨胀)".
