The Eurozone manufacturing sector activity extended its downtrend in the month of December, the latest manufacturing activity survey from IHS/Markit research showed.
The Eurozone manufacturing purchasing managers index (PMI) dropped further to 51.4 in December while services PMI dropped sharply to 51.4 versus 53.4 last, hitting fresh 49-month lows.
The IHS Markit Eurozone PMI Composite dropped from 52.7 in November to 51.3 in December, hitting fresh 49-month lows.
Comments from Chris Williamson, Chief Business Economist at IHS Markit:
“The Eurozone economy saw a disappointing end to 2018, with growth slowing to the weakest for four years. While some of the slowdown reflected disruptions to business and travel arising from the ‘yellow vest’ protests in France, the weaker picture also reflects growing evidence that the underlying rate of economic growth has slowed across the euro area as a whole.”
“Companies are worried about the global economic and political climate, with trade wars and Brexit adding to increased political tensions within the euro area. The surveys also point to further signs that the struggling autos sector continued to act as a drag on the region’s economy.”
“While GDP growth in the fourth quarter as a whole is indicated at almost 0.3%, the surveys point to quarterly GDP growth momentum slipping closer to 0.1% in December alone. Forward-looking indicators such as new orders and future expectations remaining subdued suggest that demand growth is stalling, adding to downside risks to the immediate outlook.”
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