Output fall in EU and China

Tim Wallace
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FACTORY activity across both the Eurozone and China declined in November, according to Markit’s purchasing managers’ indices (PMI) published yesterday.

Gloomy figures suggest the Eurozone will suffer a recession across the year-end.

Manufacturing PMI was reported at 46.4, down from 47.1 last month, and services activity came in at 47.8, a slightly slower rate of decline than seen in October’s 46.4.

The composite output PMI came in at 47.2, up from 46.5.

Any figure below 50 indicates a contraction. These figures show the third consecutive month of decline.

Chinese manufacturing PMI fell to 48 from 51, adding to pressure on the authorities to ease monetary policy further.

Germany’s services PMI stayed slightly positive at 51.4.

However, manufacturing activity declined, at a 28-month low of 47.9.

France’s decline slowed with the composite PMI rising from 45.6 to 48.7. Manufacturing fell to 47.6 from 48.5, a 29-month low.

“This data paints a bleak picture,” said BNP Paribas’ Dominique Barbet. “We forecast Eurozone GDP to contract in the fourth quarter of this year and the first of next year.”