HCOB notes that:

“The eurozone’s one-year industrial recession just isn’t coming to an finish. Output has declined once more on the similar tempo because the
earlier month, primarily because of the heavyweights Germany and France. Spain, in contrast, is the primary of the main 4 euro
nations to re-enter progress territory. On a barely extra optimistic be aware, the decline in new orders within the Eurozone has
softened considerably, providing a glimmer of hope for a possible demand restoration sooner or later.

“The assaults by the Houthis on industrial vessels within the Purple Sea have had a short lived influence, resulting in a quick
lengthening of supply occasions in January, adopted by a subsequent discount in lead occasions in February. Consequently, the
softer decline in enter costs this month is unlikely to be wholly attributed to tensions within the Purple Sea however slightly to actions
in commodity costs, such because the latest rise in oil costs. The elemental development of decrease demand, which stays the
major driver of sooner supply occasions, continues to persist.

“Inventory of purchases continues to deplete quickly, albeit at a barely softened tempo for the second consecutive month.
Regardless of this minor moderation, there’s little indication of an imminent finish to the continued one-year-long stock run-down.

“Prospects concerning future output stay cautiously optimistic, though the index continues to be barely beneath the long-term
common, reflecting the prevailing subdued atmosphere. Equally, employers are lowering their workforce, however with a
reluctance to undertake overly aggressive measures on this regard. Because of this, the general sentiment just isn’t considered one of anticipating an
exceptionally vibrant future, but corporations are additionally not bracing for depressive occasions. As an alternative, it seems that companies are
sustaining their operations, poised to spring again into motion when the indicators of enchancment materialise. They’re in a sort
of ready place.”