Eurozone Manufacturing Conditions Worsen Despite Output Rise

04 November 2002

Manufacturing output in the Eurozone countries recovered last month from a decline in September, but the latest Reuters Eurozone PMI index shows that overall conditions in the sector worsened for the second month in a row.

Compiled by NTC Research, the headline PMI index improved slightly to 49.1 in October, up from 48.9 the month before. However, the reading remains below the 50.0 threshold between expansion and contraction, signalling a deterioration in manufacturing conditions.

This decline comes in spite of a rebound in the manufacturing output barometer from 49.1 (a marginal fall) to 51.6 (a modest rise) over the same period, driven primarily by a leap in the German production index to 52.3 from September’s flood-hit 44.3.

The index of new orders across the Eurozone also improved slightly with a rise from 49.6 to 50.0, signalling no change.

However, pushing down the overall PMI index were employment – the index for which stood at 46.0, the seventeenth successive month it has recorded contraction – and stocks of purchases, which dropped for the nineteenth month in a row.

Data sourced from: NTC Research; additional content by WARC staff