Market News

• Prior 50.0

Spain's manufacturing sector activity falls back into contraction territory as the Middle East conflict starts to have an impact. The heightened uncertainty raised by the conflict and higher energy prices are feeding into supply-chain disruptions as well as rapidly rising prices for fuel and inputs. And that is resulting in manufacturers reporting accelerated declines in output and new orders.

Besides that, employment conditions also declined with the outlook also taking a hit amid a steep deterioration in manufacturing sector confidence.

Of note, input price inflation accelerated sharply to its highest level since late 2022. Expect this trend to also show up across the whole region with regards to the PMI readings today. In turn,…

• Prior 47.4

Swiss manufacturing activity was surprisingly more robust in March, despite the impact of the Middle East conflict already starting to show up. Of note, production levels returned to expansion territory with it rising by 3.6 points to 50.6 in March. Meanwhile, the manufacturing orderbook also rose strongly by 7.3 points to 54.2 on the month.

That being said, there are some downsides that are worth noting. Purchasing prices saw a massive surge amid higher input cost inflation, with it climbing 15.5 points to 71.3. Meanwhile, suppliers' delivery times also increased significantly by 10.2 points to 63.6 on the month.

Those might well come and bite at Swiss manufacturing in the months ahead, should we see the Middle East conflict…

• Prior 50.6

Key findings:

• Softer expansions in output and new orders
• Sharp spike in cost inflation fails to deter growth in purchasing and stocks
• Supply chains conditions decline at strongest rate since October 2022

Comment:

Eleanor Dennison, Economist at S&P Global Market Intelligence, said:

“The impact of war in the Middle East is being felt by manufacturers in Italy, particularly in their supply chains as lead times on inputs lengthened to the most notable degree seen October 2022 amid reports of shortages and logistical challenges.

"Prices data showed a steep intensification of cost pressures, as firms widely reported paying more for raw materials, transportation and energy. The rate of cost inflation shot up to its highest level in…

• Prior 51.7

Key findings:

• Input price inflation hits 41-month high
• Suppliers' delivery times lengthen to greatest extent since mid-2022
• Production falls for first time in six months as input price inflation spikes and supply chain stress grows

Comment:

Rob Dobson, Director at S&P Global Market Intelligence:

“UK manufacturing output contracted for the first time in six months in March, as the war in the Middle East and ongoing concerns about domestic economic policy led to a scaling back of production.

"The impact of the war also caused noticeable shifts in the cost and supply chain backdrops. Delivery times lengthened to the greatest extent since mid-2022, while the acceleration in input price inflation was the steepest since the aftermath…

• Prior 50.1

It's just a minor downgrade to the final estimate as France's manufacturing sector continues to stagnate in light of the Middle East conflict. The two biggest things to note are that suppliers' delivery times and input cost inflation both surged significantly on the month.

The former lengthened to its greatest degree since January 2023 while the latter saw a steep increase to its highest since December 2022.

Besides that, demand conditions also waned further with international customer demand seeing its steepest deterioration since July last year. That alongside an already weak domestic market sentiment.

HCOB notes that:

"The March PMI revealed an immediate impact from the war in the Middle East. The survey data, collected between…

• Prior was 50.9

Key findings:

• Cost pressures intensify in March alongside notable supply chain delays
• Output and new orders buoyed as customers react to disruption
• Business expectations retreat sharply to four month low

Comment:

Phil Smith, Economics Associate Director at S&P Global Market Intelligence:

"The immediate impacts of the war in the Middle East on the German manufacturing sector are clear to see in March's PMI results. Most notably, input cost inflation has spiked higher on the back of the surge in oil and gas prices, registering its largest single-month rise on record.

"We're already starting to see signs of stress across supply chains, with lead times on inputs lengthening to the greatest extent since mid-2022. This has helped…

• Prior 50.8

More to come..

• 4 Key market signals show deep Hormuz disruption despite mixed MSM headlines
• China PMI slows to 50.8 as cost pressures hit two-year high
• UAE push to reopen Hormuz raises prospect of U.S.-Gulf coalition. What's next to come?
• PBOC sets USD/ CNY mid-point today at 6.9025, CNY strongest since 25 March
• UAE pushes to reopen Hormuz by force, raising risk of wider war
• Tankan recap - Japan firms resilient now but warn of worsening outlook ahead
• Japan PMI slows to 51.6 as cost pressures rise and outlook weakens
• Korea triggers sidecar halt (program trades) as KOSPI futures jump 5% on global rally
• Another tanker hit in the Gulf, north of Doha (Qatar)
• Bank of Japan Tankan hits highest since 2021, but outlook softens and profits seen falling
• Recap - Trump says…

Trump on Truth Social:

All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT. You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil! President DJT

Trump is basically confirming the WSJ report released in the APAC session saying that he would be open to end the war with Iran without the Strait of Hormuz opening…

RatingDog / S&P Global China manufacturing PMI for March 2026. Yesterday we had the official PMIs.

Summary:

• China manufacturing PMI at 50.8 (prev. 52.1), still in expansion for 4th straight month
• Growth slows but remains second-strongest in six months
• Output, new orders and employment all continue to rise
• Input price inflation jumps to highest since March 2022
• Output prices hit four-year high, signalling pass-through
• Supply chains deteriorate: delivery times longest since Dec 2022
• Middle East conflict cited as key driver of cost pressures

China’s manufacturing sector continued to expand in March, though momentum cooled as rising cost pressures and supply chain disruptions began to weigh on activity.

The headline PMI came in at 50.8,…

Japan’s manufacturing sector remains in expansion but is losing momentum as cost pressures rise and confidence weakens, with the Middle East conflict feeding through into inflation and uncertainty.

Summary:

• Japan manufacturing PMI eased to 51.6 (prev. 53.0), still in expansion
• Growth slowed but remains second-strongest since mid-2022
• New orders, output and employment all expanded at softer pace
• Input cost inflation surged to fastest in ~19 months, driven by energy
• Business confidence weakened amid Middle East war uncertainty

Japan’s manufacturing sector continued to expand in March, though momentum slowed notably as rising costs and global uncertainty began to weigh on activity.

The S&P Global Manufacturing PMI eased to 51.6 from 53.0 in…

more to come