LONDON (Reuters) – Euro zone manufacturing activity fell sharply in November as a sharp decline in demand dampened prospects of an imminent recovery, according to the final HCOB Purchasing Managers’ Index (PMI) of the euro zone, compiled by S&P Global and published on Monday.
The index fell to 45.2 in November, in line with its first reading and from 46.0 in October.
An index measuring production, considered a good indicator of economic health, fell to 45.1 from 45.8 in October.
“These figures are bad. The euro zone’s manufacturing recession seems to never end. And with the decline in new orders, there is no sign of an imminent recovery,” notes Cyrus de la Rubia, chief economist. at the Hamburg Commercial Bank.
“The slowdown is widespread and affects the three main countries of the euro zone. Germany and France are the worst off, and Italy is not doing much better,” explains the economist.
Factories have been cutting staff at the fastest pace since the COVID-19 pandemic, under pressure from sluggish demand and price cuts. The employment index fell from 46.2 to 45.2, its lowest level since August 2020.
The external demand indicator, which includes trade between euro zone countries, has also accelerated its rate of decline and could fall further if Donald Trump implements tariffs.
(Reporting Jonathan Cable, Corentin Chappron, edited by Kate Entringer)
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