BCR Romania Manufacturing PMI®: Romanian manufacturing sector falls deeper into contraction territory in March
Faster declines in orders and output fail to dampen future outlook - Reduced demand for inputs sees inflationary pressures cool... - ...and supplier performance improve for the first time on record
- Faster declines in orders and output fail to dampen future outlook
- Reduced demand for inputs sees inflationary pressures cool...
- ...and supplier performance improve for the first time on record
The Romanian manufacturing downturn deepened in March, as firms signalled a deterioration across all elements of the headline PMI. New orders and output decreased at faster rates on the month, leading firms to make slightly deeper cuts to their workforce numbers. Meanwhile, there was a renewed decrease in input stocks and average delivery times were shorter (reflecting reduced pressure on supply chains).
On a more positive note, reduced demand for inputs helped to relieve some cost pressures. Confidence in the outlook for output also brightened.
The headline BCR Romania Manufacturing PMI® is a composite single-figure indicator of manufacturing performance derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
The headline index posted at 46.9 in March, down from February's six-month high (48.3). The decline in the health of the sector was broad-based, given that all five PMI components imparted negative directional influences.
Order book volumes continued to fall in the latest survey period, reportedly reflecting challenging demand conditions and tight customer budgets. Although new orders decreased at a faster rate on the month, the rate of contraction was in line with the series average.
Weighing on total sales, new work from customers in external markets dropped at a sharp pace and one that was the quickest seen over the opening quarter of 2025.
At the same time, factory production volumes across Romania continued to fall, marking the tenth reduction in output in consecutive months. Here, the rate of contraction re-accelerated to a marked rate.
Other indicators from the latest BCR PMI survey also underscored weakness across the Romanian goods-producing sector.
The index for stocks of purchases fell back into negative territory in March, after having signalled its first month of growth on record in February. The rate of depletion was elevated by historical standards. The renewed downturn came amid a noticeable reduction in input buying, with firms often stating a preference for using current stocks to fulfil production requirements.
Concurrently, suppliers' delivery times, for which the index is inverted before entering the PMI calculation, shortened for the first time in the survey's history in March (albeit only slightly). The improvement in supplier performance reflected fewer instances of delays, better input availability and subsequently reduced pressure on supply chains.
