Eurozone manufacturing growth continues slowdown

By Tuba Sahin</p> <p>ANKARA (AA) – The eurozone manufacturing sector's Purchasing Managers’ Index (PMI) continued its tumble to 51.8 in November, a London-based global data company said on Monday.</p> <p>Posting the lowest reading since August 2016, the figure was down from 52.0 in October, IHS Markit reported. </p> <p>The index signaled the continued growth slowdown of the single currency area’s manufacturing economy.</p> <p>It said the weakness was centered on the investment goods sector, and added:</p> <p>&quot;Capital goods producers registered net falls in both production and new work.&quot;</p> <p>The eurozone's export trade was also down for a third month running, while cost pressures remained elevated.</p> <p>The report said the eurozone's so-called “big-four” economies registered the lowest manufacturing PMI readings of all countries during November.</p> <p>It underlined that Italy posted a second successive monthly deterioration in manufacturing operating conditions, showing its lowest PMI reading in nearly four years.</p> <p>France saw growth ease towards stagnation, while Germany saw its weakest expansion in over two-and-a-half years. </p> <p>The Netherlands continued to show the highest expansion, though the pace of growth slipped to its lowest in over two years.</p> <p>IHS Markit stated that sentiment about future output was near a six-year low due to concerns over trade and the future performance of the auto industry and political worries. </p> <p>Chris Williamson, chief business economist at IHS Markit, said production could act as a drag on the eurozone economy in the fourth quarter. </p> <p>&quot;The darker outlook is linked to trade wars and tariffs as well as intensifying political uncertainty and has led to increased risk aversion and a commensurate cutting back on expenditure, notably for investment,&quot; Williamson said. </p> <p>As a critical measurement to indicate the health of the manufacturing sector, the monthly PMI indices — based on surveys and national data — show growth with a value above 50 points, or contraction with a level below 50 points, compared to the previous month.</p> <p><br> <br> </p> <p> </p> <p> </p> <p>