Eurozone manufacturing sector contracts further in Dec ’24 – PMI

The eurozone’s manufacturing sector ended 2024 in contraction, with the HCOB Eurozone Manufacturing PMI falling to 45.1 in December, a three-month low, from November’s 45.2. This marks the 30th consecutive month below the 50.0 threshold, indicating ongoing decline.

Key Highlights: 

• Output Index: Dropped to 44.3, a 14-month low.
• New Orders: Fell at a faster pace, driven by weak domestic demand, while export orders declined more modestly.
• Employment: Factory job cuts persisted for the 18th month, though at a slightly slower rate.
• Prices: Input costs stabilised, but manufacturers continued to lower selling prices for the fourth month.

Southern eurozone nations, including Spain (53.3) and Greece (53.2), showed growth, contrasting with sharp declines in Germany (42.5), France (41.9), and Italy (46.2). France’s PMI hit its lowest since May 2020.

Manufacturers scaled back purchasing and reduced inventories significantly, with stock reductions among the steepest since 2009. Despite the contraction, business confidence improved, reaching a four-month high, though it remains below the long-term average.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser