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Euro zone manufacturing activity fell sharply last month. HCOB’s final euro zone manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, sank to 45.2 in November (from 46 in October), further below the 50 mark separating growth from contraction. The reading has been sub-50 since mid-2022.
The downturn has hit all of the top three euro zone countries – Germany, France, and Italy. New orders are plummeting. A further decline in demand is dashing hopes of a speedy recovery in Europe.
With overall demand falling, despite manufacturers reducing their prices, factories cut headcount at the fastest rate since the COVID-19 pandemic was cementing its grip on the world. The employment index fell to 45.2 from 46.2, its lowest since August 2020.
Against a backdrop of general pessimism, Spain’s manufacturing sector performed well, with the PMI falling to 53.1 in November (from 54.5 in October), yet marking the tenth consecutive month above the 50.0 threshold.
The S&P Global manufacturing PMI for the UK sank to 48.0 in November from 49.9 in October. It is the sharpest contraction in nine months. Orders from domestic and international customers fell, and continued supply chain disruptions drove up costs.
Source: reuters.com