Eurozone manufacturing remains 'mired in deep downturn'
By Michele Maatouk
Date: Monday 02 Oct 2023
(Sharecast News) - The eurozone manufacturing sector remained "mired in a deep downturn" last month as factory orders plummeted and job losses accelerated, according to a survey released on Monday.
The HCOB manufacturing purchasing managers' index nudged down to 43.4 from 43.5 in August, staying firmly below the 50.0 mark that separates contraction from expansion.
The reading, which was in line with the initial estimate, marked the 15th successive month below 50.0, with Germany and Austria continuing to suffer the fastest rates of decline, followed by the Netherlands and France.
Meanwhile, the PMI output index fell to 43.1 in September from 43.4 a month earlier.
Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: "The output PMI was well under 50 for the entire third quarter, so we are feeling pretty certain that the recession in manufacturing continued during this period. We probably won't see things picking up until we ring in the new year, but there are reasons to believe that the bottom of the hard-to-pin-down stocking cycle has been reached.
"According to the PMI survey, stocks of purchased goods have been diminishing since early this year, but the respective index has been hovering around 45 for the last five months. This marked the bottom during the slowdowns which occurred shortly before Covid-19 hit and 2012, before moving upwards again. Being a bit cautious with this, as we're still seeing rapidly falling input purchasing, but the stocking cycle could soon recover, ready for a manufacturing bounce-back early next year."
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