Romania's manufacturing PMI index plunges in October on output, new orders

The Purchasing Managers' Index (PMI) compiled by BCR Romania for the manufacturing sector plunged to 47.6 points in October – the weakest reading in seven months – dragged down by the deterioration in the volume of new orders and volume of actual output. The decline wipes out the progress seen over the past six months, which brought the index to 49.8, close to the neutral 50-point benchmark.

The degree of optimism in business expectations fell to the lowest point since data collection in October. Companies were concerned that lower purchasing power, which was eroded by persistently high inflation and slower nominal wage growth, would dampen sales, according to Erste Group.