Eurozone Manufacturing Sector Continues To Contract

Eurozone Manufacturing Sector Continues To Contract

December 2, 2019

The euro area manufacturing sector continued to contract in November but the pace of declined slowed from October, final data from IHS Markit showed Monday.

The factory Purchasing Managers’ Index improved to 46.9 in November from 45.9 in October and above the flash 46.6.

Nonetheless, the score remained well below the crucial 50.0 no-change mark and extended the current period of contraction to ten months.

The survey data for the fourth quarter so far are indicating a quarterly rate of contraction in excess of 1 percent for manufacturing, Chris Williamson, chief business economist at IHS Markit said.

Among big-four economies, France posted manufacturing expansion on a month-on-month basis in November. The PMI climbed to 51.7 from 50.7 in October. The flash score was 51.6.

Germany remained bottom of the table, despite recording its best PMI reading in five months. The manufacturing sector remained firmly in contraction territory in November. Nonetheless, the latest declines in output, new orders and employment were slower than in recent months.

The headline IHS Markit/BME Germany PMI rose to a five-month high of 44.1 in November from 42.1 in October. This was above the preliminary estimate of 43.8.

Spain was another worst performer and Italy registered its lowest PMI print for eight months. Spain’s PMI advanced to 47.5 from 46.8 in October.

Italy’s factory PMI declined to 47.6 in November. The reading signaled the fourteenth consecutive deterioration in the sector.

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