Eurozone Manufacturing Activity Contracts

(RTTNews) - Eurozone manufacturing activity weakened in November as new orders decreased signalling fresh headwinds to demand, final survey data from S&P Global showed on Monday.

The HCOB manufacturing Purchasing Managers' Index fell to 49.6 from 50.0 in October. The flash reading was 49.7.

The score signaled a renewed deterioration in manufacturing conditions across the single currency union. Although the decline was the most pronounced since June, it was only marginal.

National PMI data revealed a stark contrast in performance between the Eurozone's two largest economies, Germany and France, and the rest of the currency bloc.

New work received by manufacturers decreased in November. Sales to overseas markets remained a challenge for factories. Nonetheless, manufacturing output growth expanded for the ninth straight month.

Factory job losses intensified and inventory levels were depleted at a faster rate. However, there was a sustained rise in production and a pick-up in business confidence.

On the price front, the survey showed that input prices increased at the strongest pace since March. By contrast, output charges reduced fractionally.

Germany's manufacturing activity shrank the most in nine months in November with a notable fall in new orders. The HCOB final PMI slid to 48.2 from 49.6 in the previous month. The reading was below the flash estimate of 48.4.

In France, manufacturing activity shrank as many companies held back investment due to political uncertainty. France's final factory PMI also dropped to a nine-month low of 47.8, in line with flash estimate, from 48.8 in the prior month.

By contrast, Italy's manufacturing activity registered its fastest growth in over two-and-a-half years in November. The manufacturing PMI posted 50.6, up from 49.9 in the prior month.

Spain's manufacturing economy continued to expand with output and new orders rising strongly. However, the HCOB factory PMI declined to 51.5 from 52.1 in October.