Factory output growth in euro area fell to the lowest level in two years, Bloomberg reports. It seems that consequences of trade war hit demand.

Purchasing Managers Index (PMI) for manufacturing from IHS dropped to 53,2 in September. It was 54,6 in August. Decline is observed due to weak demand, while companies said that concern over global protectionism was the key reason for confidence loss.

Recent data indicate that frictions between the US and other countries in regards to tariffs start influencing the economy. There is a chance of significant decline in euro area growth amid easing of monetary stimulus.

IHS Markit confirmed that slower manufacturing activity was observed among all countries, only Netherlands showed improvements.