PMI still below 50 level, signaling further deterioration in health of producing sector, S&P Global says
The euro area purchasing managers’ index (PMI) grew slightly to 47.1 in November from 46.4 in the previous month, according to a release on Thursday by data provider S&P Global.
“However, by posting another sub-50.0 reading the fifth in as many months the headline index signaled a further deterioration in the health of the goods-producing sector,” it noted.
The press release pointed to further easing in inflationary pressures, adding that the level of incoming new orders also “fell sharply once again as client demand in markets across the eurozone and other parts of the globe deteriorated.”
Chris Williamson, a chief business economist at S&P Global, said the latest PMI data was a signal of moderation in the euro area manufacturing downturn.
Noting that supplier delivery times had lengthened over the last month, Williamson said: “Future output expectations have picked up slightly on improved supply chain and energy market signals, the latter buoyed by warmer than usual autumn weather, but confidence remains amongst the lowest seen over the past decade.”