Eurozone manufacturing PMI revised to six-month high

The eurozone manufacturing sector continued to contract in November but the factory downturn eased, according to figures out Friday from S&P Global and Hamburg Commercial Bank (HCOB).

The final reading of the regional manufacturing purchasing managers' index was revised up to 44.2 last month from an initial estimate of 43.8.

This was a six-month high and up from 43.1 in October. Analysts had expected no change from the so-called 'flash' estimate.

Nevertheless, this was the 17th straight month of a below-50 reading, which separates contraction from growth.

Contractions in output, new orders, purchasing activity and inventories slowed during November, while business confidence edged up to a three-month high. However, factory job losses continued for a sixth month, with the drop in employment picking up to its sharpest rate of decline since August 2020.

“November has not been the prettiest, and this does not refer only to the weather but also to the situation in the manufacturing sector of the eurozone," said Cyrus de la Rubia, chief economist at HCOB.

"Output is still on the decline, and firms have trimmed their staff for a sixth straight month. Sure, almost all the sub-indices have perked up a bit. However, the improvements are mostly timid, lacking the dynamism needed to declare an upward trend."