Fashion
Eurozone manufacturing hits 45 month high in March amid cost surge
The S&P Global Eurozone Manufacturing PMI rose to 51.6 in March from 50.8 in February, marking a 45-month high and signalling continued expansion. The Output Index also edged up to 52.0, its strongest level in seven months, supported by modest gains in production and new orders.
Eurozone manufacturing expanded in March 2026, with PMI rising to 51.6, a 45-month high, supported by modest gains in output and orders.
Export demand stabilised and backlogs increased.
However, Middle East conflict-driven disruptions lengthened delivery times and pushed input cost inflation to a 41-month high.
Firms raised prices, employment declined, and business confidence weakened.
A key positive development was the stabilisation of export demand after eight months of contraction, while backlogs of work increased for the first time in nearly four years, indicating emerging capacity pressures. Purchasing activity also expanded for the first time since June 2022, reflecting improved business activity, S&P Global said in a press release.
However, supply-side disruptions dominated the outlook. Suppliers’ delivery times lengthened to the greatest extent in over three-and-a-half years, largely due to logistics disruptions stemming from the ongoing Middle East war. At the same time, input cost inflation surged to a 41-month high, driven by rising energy and raw material prices.
The impact of these pressures was visible across the region. Greece and Ireland led growth, while Spain remained in contraction. Germany and Italy recorded their strongest readings in 46 and 37 months, respectively, while France’s manufacturing sector stagnated.
Despite rising backlogs, employment declined at a faster pace, suggesting firms remain cautious amid uncertainty. Inventories of both inputs and finished goods were reduced more sharply, reflecting tighter supply conditions.
Manufacturers passed on higher costs to customers, with output price inflation accelerating to a more than three-year high. Meanwhile, business confidence weakened to a five-month low, falling below the long-term average as geopolitical risks cloud the outlook.
Joe Hayes, principal economist at S&P Global Market Intelligence, said the Middle East conflict has already disrupted logistics and pushed input costs sharply higher. He noted that while the sector had been gradually recovering in early 2026, rising inflation and reduced competitiveness could dampen demand if disruptions persist.
Overall, while eurozone manufacturing remains in expansion territory, the balance between recovery and renewed pressure appears increasingly fragile amid escalating geopolitical and cost challenges.
Fibre2Fashion News Desk (SG)
All customs dossiers will then be processed through a single clearance team.
Vietnam’s Hai Phong region’s customs department will launch a pilot centralised customs clearance model from June 1 to cut clearance times by 30-50 per cent and lower logistics and compliance costs.
Customs dossiers will then be processed through a single clearance team.
Administrative procedures and inconsistent implementation of regulations are the major challenges for businesses, EuroCham Vietnam said.
Deputy president of the Hai Phong Business Association Vu Ngoc Lam called on customs authorities to provide more detailed guidance for companies on electronic documentation, declaration classification, supplementary declarations, cargo release procedures and tax and fee payments under the new system, according to a domestic media outlet.
He also urged the authorities to maintain dedicated support channels for businesses and strengthen data connectivity among customs agencies, ports, shipping lines, logistics firms, warehouses and import-export enterprises.
Administrative procedures and inconsistent implementation of regulations across localities remain major challenges for businesses, Nguyen Hai Minh, deputy president of the European Chamber of Commerce in Vietnam, said.
Fibre2Fashion News Desk (DS)
Industrial activity stayed strong in many segments. The index of eight core industries witnessed an uptick. Manufacturing PMI also rose marginally as cost pressures and geopolitical spillovers kept growth momentum in new orders and output slow.
India’s economic activity in April showed resilience notwithstanding deceleration in some of the indicators, and the economy showed strength despite geopolitical and trade related uncertainties, an article in the RBI Bulletin said.
Industrial activity was strong in many segments.
However, financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook.
However, financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook, the article said.
Early results of listed private non-financial companies for the fourth quarter (Q4) of fiscal 2025-26 (FY26) also showed an improvement in business performance over the previous quarter, with aggregate sales and operating profit recording a double-digit growth.
The merchandise trade deficit widened in April this year over March, with rising import bill primarily on account of crude oil and gold imports. The trade deficit also registered an increase albeit marginally vis-a-vis April 2025.
The available high-frequency indicators of economic activity in April generally suggest sustained demand, notwithstanding challenges in a few sectors.
India is witnessing a trade reconfiguration amidst the emerging geopolitical situation, the article titled ‘State of the Economy’ noted. Its trade through the Strait of Hormuz that had declined sequentially in March went up in April this year.
Despite significant increase in input cost, operating profit growth of manufacturing companies remained broadly stable during Q4 FY26. However, the operating profit margin softened during the quarter.
However, the near-term outlook is somewhat clouded by supply side pressures, the article noted.
It said though headline inflation remains firmly within the tolerance band, the pass-through to domestic prices needs to be monitored.
Fibre2Fashion News Desk (DS)
The extension follows a brief lapse in the programme in September 2025, which had caused uncertainty for African exporters dependent on US market access.
Exporters in many African nations have regained duty-free access to the US after the African Growth and Opportunity Act (AGOA) was extended till 2026 end by a US presidential proclamation.
The extension follows a lapse in the programme in late 2025, which had caused uncertainty for African exporters dependent on US market access.
Gabon was reinstated as an AGOA beneficiary, reversing its 2023 removal.
It was restored in February 2026 when Trump signed the Consolidated Appropriations Act, extending AGOA retroactively to the end of 2026.
The latest presidential proclamation on May 19 formally implemented the extension and updated US tariff schedules. Gabon has been reinstated as a beneficiary of AGOA after making sufficient progress on governance and eligibility, reversing its 2023 removal.
The announcement is a big relief for African economies that depend heavily on AGOA-linked trade, particularly in labour-intensive sectors like garments, where duty-free access significantly improves competitiveness in the US market.
But the limited extension continues uncertainty over the long-term future of the programme.
Fibre2Fashion News Desk (DS)
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