Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  December 03, 2012 14:31:39

Eurozone - the manufacturing sector in November is still in recession, but less than in October

Eurozone manufacturing sector remained in November 9th month in a row in zone recession. PMI purchasing managers index compiled by Markit Economics for November showed improvement to 46.2 points compared to 45.4 points in October.
Contraction in the manufacturing sector has been continuing for 16 months in a row. The main problem is the decline in orders from the domestic market and export opportunities decline. Total new orders index fell to 8 months minimum. The decline in manufacturing activity also contribute to overcapacity of European manufacturers. The combination of weak demand and overcapacity then act negative pressure on the labor market.
Also negatively affect the growth of input prices, which has been continuing for three months in a row.

Of the 8 countries surveyed, the manufacturing sector is in expansion only in Ireland (52.4 points). In most other countries the November data created new lows for several months. PMI in Austria reached 49.3 points, 48.2 in the Netherlands, Germany 46.8, Spain 45.3, Italy 45.1 France 44.5 41.8 points and Greece.
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