Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Eurozone Manufacturing PMI Dec 2012

Eurozone Manufacturing PMI Dec 2012

|Views: 1,246|Likes:
Published by economicdelusion

More info:

Published by: economicdelusion on Jan 02, 2013
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





Page 1 of 3
 © Markit Economics Limited 2013
News Release
Purchasing Managers’ Index
EMBARGOED UNTIL: 09:00 (UK Time), 2 January 2013
Markit Eurozone Manufacturing PMI
– final data
Eurozone manufacturing ends 2012 mired in recession, as demand fromdomestic and export markets remains weak
 Data collected 5–14 December.
 Final Eurozone Manufacturing PMI at 46.1 inDecember (flash estimate 46.3)
 Downturn remains widespread, with all nationsbar Ireland reporting contractions
 Cost caution leads to job losses and furtherscaling back of inventory holdings
Manufacturing PMI
(overall business conditions)
        1        9        9        8        1        9        9        9        2        0        0        0        2        0        0        1        2        0        0        2        2        0        0        3        2        0        0        4        2        0        0        5        2        0        0        6        2        0        0        7        2        0        0        8        2        0        0        9        2        0        1        0        2        0        1        1        2        0        1        2
Eurozone Manufacturing PMI, sa, 50 = no change
Source: Markit.
The Eurozone manufacturing sector ended the yearon a weak footing, with levels of production andnew orders both contracting further in December.Rates of decline accelerated slightly over the monthand were stronger than the earlier flash estimates.At 46.1 in December, down from 46.2 in November,the seasonally adjusted Markit
Final EurozoneManufacturing PMI
signalled contraction for theseventeenth straight month. The PMI was alsobelow its earlier flash estimate of 46.3.
was the only nation to report improvedoperating conditions. Downturns accelerated in
, but eased in
. Greece remainedbottom of the PMI league table, still well adrift of thenext-weakest performing nations France and Spain.
Countries ranked by Manufacturing PMI
Ireland 51.4 4-month lowNetherlands 49.6 3-month highAustria 48.1 2-month lowItaly 46.7 9-month highGermany 46.0 2-month lowFrance 44.6 4-month highSpain 44.6 2-month lowGreece 41.4 2-month low
        2        0        1        0        2        0        1        1        2        0        1        2
GermanyFranceItalySpainNetherlandsAustriaIrelandGreeceManufacturing PMI, sa, 50 = no change
Source: Markit.
Eurozone manufacturing
declined forthe tenth successive month in December, ascompanies were hit by reduced inflows of both totalnew orders and incoming new export business.However, over Q4 2012 as a whole, the averagerates of decline in both output and new orders werethe slowest since the opening quarter of the year.The latest decline in
new export orders
took thecurrent sequence of contraction to one-and-a-halfyears, despite the rate of reduction easing slightlyto a nine-month low. Lower levels of new exportbusiness reflected reduced trade flows betweenEurozone nations and subdued demand in thewider global market.
Page 2 of 3
 © Markit Economics Limited 2013
Only Spain, the Netherlands and Ireland sawincreases in new export orders during December,although the trend in Italy also moved closer tostabilising. In contrast, Germany, France andGreece all reported substantial declines in newexport business. The pace of reduction easedslightly in Germany, but accelerated in France andGreece to the fastest rates since May 2009 andJanuary 2009 respectively.The ongoing downturn in the sector led to further
job losses
in December. Payroll numbers havenow fallen in each of the past 11 months, with thelatest decline broadly similar to that recorded inNovember. Job cuts were reported in all nationsexcept Ireland, with rates of loss gathering pace inGermany, Spain, Austria and Greece. However, theextent of the reductions in Germany and theNetherlands remained only moderate.Lower employment also reflected ongoing costcaution and signs of excess capacity. Companies’reluctance to increase costs was highlighted byfurther reductions in
inventory holdings
and asubstantial scaling back of
purchasing activity
.Meanwhile, spare resources were diverted towardscompleting existing contracts, leading to a furthermarked drop in
backlogs of work
(albeit theweakest since May).Price pressures remained relatively subdued inDecember. Weak demand and strong competitionmeant that
selling prices
were unchanged,although this was nonetheless an improvement onthe discounting reported in the prior six months.
Input cost
inflation eased further and was theweakest during the current four-month sequence.This mainly reflected the trend in Germany, where aslight decrease in purchasing costs was signalled.The other nations covered by the survey all sawsharper increases in input prices, except theNetherlands.
Chris Williamson, Chief Economist at Markit
“The eurozone manufacturing sector remained entrenched in a steep downturn at the end of the year. Although not as severe as in the autumn, the survey indicates that production continued to fall at a quarterly rate of approximately 1% in December,therefore acting as a severe drag on the wider economy. The region’s recession therefore looks likely to have deepened, possibly quite significantly,in the final quarter.“Manufacturers look to be in for another tough year in 2013, though prospects have brightened a little,as producers should benefit from signs of stronger demand in key export markets such as the US and China. Improving competitiveness remains the key to success, however, and Ireland perhaps provides a reassuring example to other countries of how exports can rise on the back of structural reforms.“Much of course also depends on how the region’s debt crisis evolves over coming months, and any set-backs could mean the resulting damage to domestic business and consumer confidence could easily offset any gains made in export markets outside of the eurozone.” 

Activity (2)

You've already reviewed this. Edit your review.
1 hundred reads
economicdelusion liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->