Eurozone manufacturing PMI drops to 45.2 points in November
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The latest data from the HCOB PMI survey reveals that the manufacturing sector in the Eurozone has continued to decline at an accelerated pace in November. The survey indicates stronger declines in factory orders, production, purchasing activity, and inventory levels.
The HCOB Eurozone Manufacturing PMI, which tracks the overall health of the Eurozone’s manufacturing sector, dropped further below the neutral 50 threshold to 45.2 in November, down from 46 in October. This marks a continuation of the downturn that has been ongoing since July 2022, with the contraction slightly intensifying compared to the average pace of decline observed during this period.
Germany, France, and Italy Lead Manufacturing Slowdown
ù The decline in the manufacturing sector is primarily concentrated in the Eurozone’s largest economies: Germany (43), France (43.1), and Italy (44.5). The latest data shows that the manufacturing contraction in these countries has reached its most significant pace in the last 10 and 12 months, respectively. Other countries such as the Netherlands, Austria, and Ireland also saw manufacturing activity fall below the neutral level of 50.
On the other hand, Spain (53.1) and Greece (50.9) recorded slower but continued improvements in their manufacturing sectors, indicating a less severe downturn compared to the rest of the region.
Regional Disparities in Manufacturing Performance
Despite Spain’s better performance, its smaller size relative to the overall Eurozone economy means it cannot significantly offset the declines seen in the larger countries. Germany, in particular, has been hit hard, with the manufacturing slowdown continuing to drag down the overall performance of the region.
Outlook for the Eurozone Manufacturing Sector
Looking ahead, manufacturing output in the Eurozone is expected to decline by approximately 1% in the third quarter compared to the previous one. Given the sharp drop in new orders, it is anticipated that the sector will continue to face challenges, with further production declines likely by the end of the year.
The ongoing manufacturing recession underscores the struggles the Eurozone is facing as its largest economies grapple with weak demand, falling production, and uncertain economic conditions.
The HCOB Eurozone Manufacturing PMI, which tracks the overall health of the Eurozone’s manufacturing sector, dropped further below the neutral 50 threshold to 45.2 in November, down from 46 in October. This marks a continuation of the downturn that has been ongoing since July 2022, with the contraction slightly intensifying compared to the average pace of decline observed during this period.
Germany, France, and Italy Lead Manufacturing Slowdown
ù The decline in the manufacturing sector is primarily concentrated in the Eurozone’s largest economies: Germany (43), France (43.1), and Italy (44.5). The latest data shows that the manufacturing contraction in these countries has reached its most significant pace in the last 10 and 12 months, respectively. Other countries such as the Netherlands, Austria, and Ireland also saw manufacturing activity fall below the neutral level of 50.
On the other hand, Spain (53.1) and Greece (50.9) recorded slower but continued improvements in their manufacturing sectors, indicating a less severe downturn compared to the rest of the region.
Regional Disparities in Manufacturing Performance
Despite Spain’s better performance, its smaller size relative to the overall Eurozone economy means it cannot significantly offset the declines seen in the larger countries. Germany, in particular, has been hit hard, with the manufacturing slowdown continuing to drag down the overall performance of the region.
Outlook for the Eurozone Manufacturing Sector
Looking ahead, manufacturing output in the Eurozone is expected to decline by approximately 1% in the third quarter compared to the previous one. Given the sharp drop in new orders, it is anticipated that the sector will continue to face challenges, with further production declines likely by the end of the year.
The ongoing manufacturing recession underscores the struggles the Eurozone is facing as its largest economies grapple with weak demand, falling production, and uncertain economic conditions.