A broad-based slowdown in eurozone manufacturing activity eased slightly last month, but the sector remains in contraction, with firms cutting staff for the sixth consecutive month, Reuters reports.
In November, S&P Global’s final purchasing managers’ index (PMI) for the eurozone manufacturing sector rose to 44.2 from October’s 43.1, beating the preliminary estimate of 43.8. A reading below 50 indicates a contraction in activity.
The index measuring output, which is part of the composite PMI released on Tuesday and considered a good indicator of the health of the economy, rose to 44.6 from 43.1. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said:
November has not been the prettiest, and this does not refer only to the weather but also to the situation in the manufacturing sector of the euro zone. Sure, almost all the sub-indices have perked up a bit. However, the improvements are mostly timid, lacking the dynamism needed to declare an upward trend.
The sub-indices for demand, exports and backlogs remained below the threshold. Overall demand fell for the 19th month, although the new orders index rose to 41.5 from 39.0, a six-month high. Based on the survey results, business executives do not expect much of an upturn as headcount is shrinking again.
The employment index fell to a low not seen since August 2020, when the COVID-19 pandemic took hold globally.
