The severe situation of the Eurozone producers, which are affected by weak global demand and political uncertainty, increased further in February.

Industrial Purchasing Managers’ Index (PMI) reached its lowest level in the last six years in February, while production is shrinking for the first time since 2013. The PMI index reached 49.2 points, falling below the critical level of 50 points, which divides the growth from the fall. For comparison, last month the index was at the level of 50.5 points.

The Eurozone economy as a whole remains weak, with the pace of expansion stagnating in February. The total Purchasing Managers’ Index (PMI) rose slightly from 51 points to 51.4 points but remained below the average in recent years.

“As factory orders are declining at a faster pace, the contraction in the manufacturing sector is likely to worsen in the coming months”, said Chris Williams, an economist at IHS Markit.

Germany’s massive manufacturing sector is declining for the second month in a row, as this is happening in the context of the expected Brexit, while uncertainty about the US-China trade war continues, and new emissions standards still concern automakers.

However, the demand for services within the Eurozone has increased and the sector’s Purchasing Managers’ Index jumped from 51.2 points to 52.3 points in February. For comparison, the consensus forecast of analysts was 51.4 points. This helped optimism to grow, with the business expectancy index rising to a four-month high from 60.5 to 61.6 points.

Still, the decline in overall demand and the accumulation of different challenges also affected prices. The Producer Price Index fell to an 18-month low of 52.5 points compared to 53.4 points last month.

January inflation is expected to be confirmed at 1.4% when official figures are released on Friday. This is well below the target of the European Central Bank of 2%.