Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 45.7 points in September recording the lowest level since October 2012, down from August’s 47 points and increasing by 0.1 percentage point compared to the earlier flash estimate at 45.6 points. September was the eight consecutive month for which the PMI has remained below the 50.0 no-change mark.
In September, all three market groups posted decreases in operating conditions, while investment goods registered the sharpest fall, followed by intermediate goods. Meanwhile, the PMI for consumer goods remained below the 50.0 no-change mark for the first time since November 2013.
Due to continuous concerns about Brexit and the negative impact of the US-China trade conflicts on trade, in September confidence about future changed just a little compared to August, while sentiment was at its lowest level since November 2012.
“The health of the euro zone manufacturing sector went from bad to worse in September, with the PMI survey indicating the steepest downturn for nearly seven years and sending increasingly grim signals for the fourth quarter. The September PMI points to manufacturing output falling at a quarterly rate in excess of one percent, representing a severe drag on GDP in the third quarter,” said Chris Williamson, chief business economist at IHS Markit.