(Ticker) – The contraction of the eurozone manufacturing sector continues in November, although rates of decline in output and new orders were less aggressive compared with the nearly two-and-a-half-year record seen in October. It is evident fromS&P Global’s latest PMI reportthe indices on the expectations of purchasing managers of manufacturing companies, with the latest data also showing a new slowdown in inflationary pressures, partly caused by weaker demand and the reduction of pressures on suppliers.
The index manufacturing PMI it increased slightly to 47.1 points from 46.4 previously and is just below the 47.3 in the flash estimate. The indicator of the state of health of the manufacturing sector thus confirms itself below the threshold of 50 points, which acts as a watershed between recession and expansion.
At the national level, the PMI in Italy it strengthened to 48.4 points from the previous 46.5, exceeding the 47 consensus. The PMI of the Germany instead it rose to 46.2 points compared to the previous 45.1 and the expected 46.7. The data of France stood at 48.3 points from the previous 47.2 and the expected 49.1, while the Spain it recorded an improvement to 45.7 points from the 44.7 of the previous month and compared to the 45.6 expected.
“In November the PMI signals a encouraging moderation of the intensity of the contraction of the eurozone manufacturing sector, which will support hopes that the region may not face as severe a winter contraction as many predicted,” he commented Chris Williamson, Chief Business Economist at S&P Global Market Intelligence – However, the survey’s production index continued to report one of the lowest values ever recorded over the past ten years. At these levels, the survey is indicative of a strong annualized rate of contraction of around 4%.”
“Looking ahead, forecasts for future production have increased slightly due to improved signals from the supply chain and the energy market, the latter buoyed by a milder-than-usual autumn.optimism however remains among the lowest of the last ten years“, he added.