Business

Eurozone manufacturing PMI down in Dec. as omicron fears rise

PMI diminishes from 58.4 in November to 58 in December

The eurozone Purchasing Managers’ Index (PMI) for manufacturing sector growth stabilized in November, slightly rising from 58.4 to 58 in December, a London-based global data company revealed on Monday.

Sector data showed consumer goods makers drove the slower improvement in manufacturing conditions, with intermediate and capital goods producers registering marginally quicker upturns, the report said.

Italy once again led broad euro area manufacturing with a PMI value of 62, despite a slowdown in its expansion.

This was followed by Greece and Austria, with 59 and 58.7, respectively.

“At the other end of the scale, France’s goods-producing sector remained the weakest-growing of the eight monitored eurozone nations,” it added.

Commenting on the final Manufacturing PMI data, Joe Hayes, senior economist at IHS Markit said: “It has been an incredibly challenging period for eurozone manufacturers this second half of 2021, but the latest survey data hasn’t spoiled the festive cheer too much.”

“We’re seeing some tentative, but very welcome signs that the supply chain crisis which has plagued production lines all across Europe is beginning to recede,” he added.

Alleviating supply chain pressures also fed through to prices as input costs rose at the slowest rate since April, he said.

“Easing inflation rates are again a welcome sign, but we’re still in hot territory. We’re now facing a fresh bout of economic uncertainty as the Omicron variant emerges in Europe,” he warned.

Source
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