Markit's Euro zone Manufacturing Purchasing Managers Index (PMI) posted 51.8 points in November this year, down from October’s 52.0 points and increasing compared to the earlier flash estimate of 51.5 points.
In November this year, euro zone manufacturing growth recorded its weakest level since August 2016. The slowdown in the manufacturing sector is attributed to a weakening investment goods sector.
In November, Germany, France, Italy and the Netherlands posted the lowest manufacturing PMI readings, while Spain, Austria, Greece and Ireland showed improvement in growth.
Production in the manufacturing sector rose slightly due to faltering demand which was partially related to the challenging conditions in the auto industry. In the given month, manufactured goods production posted the weakest growth pace in almost five and a half years.
“Hopes that the soft patch may prove short-lived are countered by business optimism about prospects for the year ahead remaining among the gloomiest seen since the sovereign debt crisis in 2012, suggesting companies are bracing themselves for further weak demand in the coming months,” stated Chris Williamson, chief economist at IHS Markit.