403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Eurozone manufacturing sector struggles in December
(MENAFN) The eurozone manufacturing sector faced a deeper downturn in December, with most indexes ending the year in contraction, according to a report released on Thursday.
The eurozone manufacturing purchasing managers index (PMI) dropped to 45.1 in December, its lowest level in three months, continuing a two-and-a-half-year trend of decline.
Key indicators, including new orders, output, purchasing activity, and inventories of inputs, all showed declines in December.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented on the PMI data, stating, “New orders have fallen even more sharply than in the previous two months, dampening hopes for a quick recovery. This is further confirmed by the accelerated decline in order backlogs."
He noted that a sign of recovery would be when companies begin rebuilding their inventories of intermediate goods, but December offered no indication of this. Instead, inventories were reduced at an even faster pace, and companies accelerated the depletion of finished goods inventories, signaling expectations of continued weak demand.
On a more positive note, business confidence saw a slight improvement, with growth expectations reaching a four-month high.
The eurozone manufacturing purchasing managers index (PMI) dropped to 45.1 in December, its lowest level in three months, continuing a two-and-a-half-year trend of decline.
Key indicators, including new orders, output, purchasing activity, and inventories of inputs, all showed declines in December.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented on the PMI data, stating, “New orders have fallen even more sharply than in the previous two months, dampening hopes for a quick recovery. This is further confirmed by the accelerated decline in order backlogs."
He noted that a sign of recovery would be when companies begin rebuilding their inventories of intermediate goods, but December offered no indication of this. Instead, inventories were reduced at an even faster pace, and companies accelerated the depletion of finished goods inventories, signaling expectations of continued weak demand.
On a more positive note, business confidence saw a slight improvement, with growth expectations reaching a four-month high.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment