S&P Global: Romanian manufacturing sector ends ‘24 with record low PMI

The Romanian manufacturing sector closed 2024 with its weakest performance on record, as indicated by the BCR Romania Manufacturing PMI, which fell to 46.4 in December. This figure represents the sharpest monthly contraction in the 18-month history of the survey.
The main driver of this decline was a record low in new orders, accompanied by reductions in output, employment, and stocks of purchases compared to the previous month. Muted demand conditions were attributed to a combination of political instability, budgetary constraints among clients, and diminished customer interest.
Romania’s manufacturing exports continue to face challenges in the current global economic climate. The flash HCOB Germany Manufacturing PMI also declined in December compared to November, remaining significantly below the neutral 50 level.
For the entirety of 2024, the average PMI stood at 48.6, signalling a likely second consecutive year of contraction for Romanian manufacturing output. The average PMI for the fourth quarter was lower than the preceding quarter, suggesting that industry may have negatively impacted GDP growth in the final months of the year.
Looking ahead to 2025, growth in Romanian manufacturing is possible, depending on external demand. However, structural issues, including the nation’s peripheral position in the global value chain, continue to weigh on the sector. The reduced demand is attributed to slower international economic growth and the limited production of high-value goods at Romanian factories.
Attribution: Amwal Al Ghad English