LONDON (Reuters) – Activity in the euro zone’s industrial sector slowed at a faster pace than previously estimated, shows the final S&P Global/HCOB PMI published on Thursday.
The PMI index for the manufacturing sector in the euro zone deteriorated to 45.1 in December, a little below its preliminary reading and below the 50 mark which separates growth and contraction in activity.
In November, the index reached 45.2.
A subindex measuring production, considered a good indicator of the sector’s economic health, fell to 44.3 from 45.1 in November.
“New orders fell at an even faster pace than in the previous two months, putting away any hope of a short-term recovery,” summarizes Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
“The acceleration in the erosion of order books supports this reading.”
The index measuring new orders fell below break-even at its lowest level in three months, while the index measuring work backlogs rose to 42.0 from 42.9, suggesting that greater Part of the activity was spent resolving a past request.
However, companies have lowered their prices for the fourth consecutive month while once again reducing their workforce, despite prospects for 2025 considered more encouraging.
The return of President-elect Donald Trump to the White House at the end of January nevertheless adds to the caution of businesses, which could see their exports to the United States hit by customs duties of 10%.
(Written by Jonathan Cable, Corentin Chappron, edited by Blandine Hénault)
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