Euro Zone Manufacturing Downturn Continues

Arthi Gupta
03 Sep, 2012
New York City

Downturn in euro zone manufacturing continued in August on weaker inflows of new orders from domestic markets and a broader softening of global economic growth. Production continued to drop sharply in Germany, France, Italy, Sweden and Spain.

[R]2:00 PM Frankfurt – Downturn in euro zone manufacturing continued in August on weaker inflows of new orders from domestic markets and a broader softening of global economic growth. Production continued to drop sharply in Germany, France, Italy, Sweden and Spain.[/R]

Euro zone Factory PMI Rises

Downturn in euro zone manufacturing continued in August, as weak demand hit output and employment, according to a survey from Markit Economics.

The purchasing managers'' index, that measures the activity in the factory sector, rose to 45.1 in August from 44 in July. The revised reading was slightly below the earlier flash estimate of 45.3. The euro zone manufacturing sector contracted for the thirteenth successive month in August.

Euro zone manufacturers were hit by weaker inflows of new orders from domestic markets, falling intra-euro zone trade and a broader softening of global economic growth. Production continued to drop sharply in Germany, France, Italy and Spain.

German Manufacturing Growth Decline Slows

German manufacturing output decreased at a slower pace, final data from Markit Economics showed.

The final seasonally adjusted final Markit/BME Germany Purchasing Managers'' Index climbed to 44.7 in August, up from a 37-month low of 43 during July.

French Manufacturing Output Rises

French manufacturing output contracted at slower pace in August, a report from Markit Economics showed.

The headline purchasing managers'' index rose to 46 in August compared to the flash estimate of 46.2 in July. The latest reading was the highest since April this year.

A key contributor to the rise in the PMI was a slower decline in the volume of new orders.

Spanish Manufacturing Sector Contracts

The Spanish manufacturing sector remained in contraction in August as output, new orders and employment all continued to decrease.

The seasonally adjusted Markit PMI rose to 44 in August from 42.3 in the previous month, and pointed to the weakest deterioration in business conditions since March.

Manufacturing output fell for the sixteenth successive month.

Dutch Manufacturing PMI Climbs

Dutch manufacturing activity rose to a six-month high in August, according to a survey by Markit Economics released today.

The headline NEVI Purchasing Managers'' Index rose to 49.7 in August from 48.9 in July.

Swedish Factory Activity Drops

The seasonally adjusted purchasing managers'' index for the Swedish manufacturing sector fell to 45.1 in August from 50.6 in July, data from a survey by Swedbank showed.

The new orders component logged the largest decline, followed by production.

Swiss Factory PMI Declines

Switzerland’s manufacturing sector activity fell unexpectedly in August, a survey showed today.

The procure.ch /SVME purchasing managers'' index fell to 46.7 from 48.6 in July.

Italian Manufacturing Output Slides

Italy’s manufacturing sector remained deep in recession during August, data from a survey by Markit Economics and ADACI showed.

The seasonally adjusted purchasing managers'' index for the manufacturing sector fell to a 10-month low of 43.6 in August from 44.3 in July, extending the current sequence of contraction in the sector to 11 months.

Greek Manufacturing Activity Deteriorates

Manufacturing operating conditions in Greece continued to deteriorate in August as output and new orders fell at severe rates, data from a survey by Markit Economics showed today.

The seasonally adjusted purchasing managers'' index for the manufacturing sector edged higher to a three-month high of 42.1 in August.