The final data provided by HCOB showed that activity in the eurozone manufacturing sector continued to contract in September, with production, new orders, employment and procurement activity all declined at faster rates. Meanwhile, business growth expectations slumped to a 10-month low.
Manufacturing PMI fell to 45.0 points in September, compared with 45.8 points in August. The index remains below 50 points, which indicates a reduction in activity in the sector, since July 2022. Economists had expected the index to drop to 44.8 points. As for the eurozone countries, Spain demonstrated the strongest-performing manufacturing economy. Greece also continued its expansion sequence. However, Germany recorded its most pronounced worsening of factory conditions for 12 months.
HCOB said that the goods production fell again in September, with the pace of contract being the fastest in the year-to-date. Meanwhile, new orders recorded the sharpest drop since December 2023. Purchasing activity also shrank at the quickest pace since last December. The number of people employed fell again in September, recording a 16-month decline in a row and the sharpest decline since October 2012, excluding pandemic-hit months. Meanwhile, the pace of backlogs of work was sharp overall and the steepest in the year-to-date. As for the inflationary situation, input costs declined for the first time since May, while selling prices also decreased. Looking ahead, eurozone manufacturers remained slightly optimistic on balance, but the overall level of positive sentiment was its weakest in 10 months and significantly below the series long-run average.