Romania Manufacturing PMI Improves to 6-Month High

The BCR Romania Manufacturing PMI rose to 48.3 in February 2025, up from a record low of 46.1 in the previous month. This marked the highest reading since August 2024, signaling a slight improvement in the sector. The rates of contraction in both output and new orders softened, with the decline in new orders showing the weakest pace in the past eight months. Additionally, for the first time on record, manufacturers began to build input stocks amid reports of delivery delays. Workforce levels continued to decline, though at a modest rate, primarily due to the non-replacement of staff who left. On the price front, cost inflation hit a six-month high, driven mainly by higher operating expenses, including increased costs for raw materials, energy, and labor. However, factory gate charges increased at a slower pace compared to January. Looking ahead, manufacturers remain optimistic about future output, with many expecting new business opportunities to arise.

The BCR Romania Manufacturing PMI declined to 46.1 in January 2025, down from 46.4 in the previous month, marking a fresh record low. The latest reading also marked the seventh straight month of contraction in factory activity due to faster falls in output and stocks of purchases amid demand weakness and challenging economic conditions. New orders continued to fall, with foreign sales shrinking and among the softest on record while employment fell. Delivery times lengthened, although at a softer rate, due to less strain on supply chains. The downturn in buying activity also gained slight momentum, with the rate of contraction being strong and among the sharpest on record. On prices, input prices continued to climb, while output prices rose to the second-strongest on record due to increased salaries, higher taxes, and material costs. Finally, sentiment improved to a seven-month high amid expectations of new contracts and planned product launches to support output growth.