Eurozone manufacturing downturn eases in November

The slowdown in eurozone manufacturing activity eased in November, according to a survey released on Thursday.

S&P Global’s final manufacturing purchasing managers’ index for the sector rose to 47.1 from 46.4 in October, coming in below a flash estimate of 47.3 but ahead of the 50.0 mark that separates contraction from expansion.

The survey also showed that there was a further easing of inflationary pressures, in part due to weaker demand and reduced strain on suppliers.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The PMI signals some welcome moderation in the intensity of the eurozone manufacturing downturn in November, which will support hopes that the region many not be facing a winter downturn as severe as previously anticipated by many.

"However, the survey’s production index continuing to run at one of the lowest levels recorded over the past decade. At these levels the survey is indicative of a marked annualised rate of contraction of approximately 4%.

"While official manufacturing data have been more buoyant - and more volatile - in recent months, such weak PMI readings have always been followed by commensurate steep declines in the official statistics."