The deterioration in manufacturing business conditions across the Eurozone eased slightly in November but most major markets remained clearly in contraction.
The IHS Markit Eurozone Manufacturing PMI® for November read 46.9, up one point from October’s 45.9 as falls in new orders and output were reported to be ‘milder’. Intermediate and investment goods sectors remained in contraction but the rates of decline were softer. There was no change month on month in conditions in the consumer goods sector.
Only Greece (54.1) and France (51.6) posted expansion readings. Business conditions in Ireland continued a six month deterioration, with the PMI reading reaching a two month low of 49.7, falling below the no-change 50 mark. The Netherlands dropped below 50 (49.6) – for the first time in six years. Italy’s reading also fell to 47.6. Spain (47.5), Austria (46.0), and Germany (44.1) all recorded slight improvements but continued to foot the Eurozone table.
The survey did indicate a marked upturn in business sentiment, particularly in Germany. Although concerns over trade wars and Brexit impacts remain strong in the short term, respondents were more positive about seeing increased manufacturing activity over the coming twelve months.