The final data provided by HCOB showed that activity in the eurozone manufacturing sector continued to contract in November, while the pace of contract accelerated slightly compared to October amid stronger declines in new factory orders, production, purchasing activity and inventory.
Manufacturing PMI fell in November to 45.2 points, as expected, compared with 46.0 points in October. The index remains below 50 points, which indicates a reduction in activity in the sector, since July 2022. This marks the longest downturn since survey data were first collected in 1997. As for the eurozone countries, Germany, France, and Italy faced significant downturns, while Spain and Greece showed slower improvements.
HCOB said that the factory output fell again in November, with the pace of contract accelerated slightly since October and was marked overall. Meanwhile, new orders recorded a sharp drop. This extended the current sequence of shrinking new business to just over two-and-a-half years and reflected a worsening of sales performances in export markets during November. The reductions in buying volumes and stocks of inputs were both the most marked in 11 months. The number of people employed fell again in November, and the rate of job shedding was the steepest since August 2020. Meanwhile, backlogs of work also declined last month, accelerating compared to October and recording the 30th consecutive monthly decline. As for the inflationary situation, input costs declined again in November, but slightly, while selling prices recorded the sharpest drop since April. Looking ahead, eurozone manufacturers remained optimistic of growth in the coming 12 months, with the level of positive sentiment even ticking up to a 3-month high.