The newest S&P Global data reveals that most European economic sectors continue to experience plunging levels of demand and operations in early 2023. Out of the twenty monitored categories, fifteen have suffered a reduction in production – an increase from December’s eleven sectors but smaller than November’s eighteen sectors.
Many Major Sectors Suffer from Demand Decrease
Business conditions in the economic sectors regarding basic materials across Europe still need to be improved, with its three sub-indexes ranked among the lowest six. Of all twenty industrial sectors tracked, forestry and paper products experienced the most pronounced decreases both in production and new orders.
On the other hand, the economic sectors of software and services led the European growth ranking in the first month of the year, registering its greatest expansion of activity since last April. Its sector counterpart in manufacturing and technology benefited from this and was one of four other industries to record a rise in output in January.
Thus, for the sixth time in the last seven months, the broader technology sector was the best performer among the seven broad categories monitored. The only other economic sectors that recorded growth in January were tourism and recreation, beverages and food, and industrial services. In addition, tourism and recreation recorded the largest expansion in order book volumes.
S&P Global: There Are Complicated Signals Across the Market
January was a month of positive economic changes, with 11 out of the 20 sectors tracked by S&P Global adding to their workforce. This growth rate accelerated in certain economic sectors, such as technology equipment companies, which had the fastest-growing headcounts overall. Prices also increased significantly; 18 out of 20 economic sectors experienced an increase in input costs – including banks and tourism & leisure – while chemicals and forestry/paper products lowered their average expenses compared to December’s figures.
Technology equipment experienced the highest rate of product price inflation, while forest products and paper firms decreased prices yet again for a two-month running period.
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