Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 46.9 points in November, up from October’s 45.9 points and increasing compared to the earlier flash estimate at 46.6 points. In November, the euro area manufacturing economy continued to contract, though with the slowest rate for three months.
In November, both the intermediate and investment goods sectors continued to contract, although in each case rates of decline were weaker. Operating conditions for consumer goods producers were unchanged compared to October. According to Markit, manufacturers continued to reduce their purchasing activity in November, preferring instead to focus on utilising existing stocks in production wherever possible. There was subsequently little pressure on vendors, who were able to improve their delivery performance for a ninth successive month
“A further steep drop in manufacturing output in November means the goods-producing sector is likely to have acted as a major drag on the euro zone economy again in the closing quarter of 2019. Although still signaling a steep rate of decline, the manufacturing PMI nonetheless brings some encouraging signals which will fuel speculation that the worst is over for euro area producers, barring any new setbacks (notably in relation to Brexit and trade wars),” said Chris Williamson, chief business economist at IHS Markit.