Bangkok--5 Mar--Standard & Poor's The Eurozone manufacturing sector expanded for the 32nd consecutive month, but continues to lose momentum, according to an article published yesterday by Standard & Poor's. The report, titled "Europe Credit Comment: Sluggish Manufacturing Sector Puts Pressure On Credit Quality (Premium)," says that the Royal Bank of Scotland/NTC Research Purchasing Managers' Index (PMI) (released March 3) posted its second lowest reading of 52.3 in 30 months. "Manufacturing activity across member states vary widely, with Germany and France showing resilience, while Spain and Ireland have contracted," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "The new orders and export orders subindexes continued to decline in February, as slowing global economies and the strong euro dampen demand." In a separate economic release yesterday, the flash estimate of Eurozone CPI inflation remained at 3.2% in February, its highest level since the Eurozone was formed in 1999. Our economics team expects the Bank of England to cut the U.K. base rate by 50 basis points by July 2008, and the European Central Bank to keep rates on hold for the better part of the year, as risks to economic growth increase. The report is available to RatingsDirect subscribers who have upgraded their package to include the Global Fixed Income Research add-on. RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber with the Global Fixed Income Research add-on, please contact your local Standard & Poor's representative or [email protected] for further information. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.