The IHS Markit Eurozone Manufacturing PMI® for December read 46.3, down on November’s 46.9, as the pace of decline in both output and new orders accelerated.
Overall new orders fell sharply despite the weakest reduction in new export sales since the start of 2019.
Seven of the eight countries in the zone recorded weaker PMIs – Austria being the only exception with an unchanged contraction reading of 46.0. Germany continued to foot the table with a 2-month low reading of 43.7. Greece (53.9) topped the table followed by France (50.4). Ireland remained in contraction (49.5) as did the Netherlands (48.3), Italy (46.2), and Spain (47.4),
Spare capacity meant work backlogs declined for the sixteenth consecutive month and at a faster rate than November. In consequence employment levels reduced at the sharpest rate since 2013.
Input prices fell, further highlighting supply-side spare capacity. Output prices also fell again in December, continuing a trend prevailing since July.
Markit calculates that Eurozone production fell by 1.5% in the final quarter of 2019, presenting a significant drag on the wider Eurozone economy.