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Eurozone manufacturing output down

Ireland was the only member of the 17-nation single currency bloc to grow its manufacturing output in December, according to purchasing managers' surveys.
Europe slipped further into recession in the last quarter of 2012, with new orders from factories continuing their slump.
Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) crept down to 46.1 in December from 46.2 in November. The index has been below the 50 mark, which divides growth from contraction, since August 2011.
factories cut their workforces at a faster pace than in the previous month and Germany, Europe's largest economy, saw output shrink for the 10th month in a row, and at a faster pace than in November.
Ireland remained the only Eurozone country seeing manufacturing growth in December, while activity was close to stabilizing in the Netherlands. The rate of decline remained significant in France, Spain and particularly Greece, where the index fell from 41.8 to 41.4. Italy saw manufacturing contract at the slowest rate for nine months, but the drop was still marked.
IHS Global Insight economist Howard Archer thinks 2013 will bring more of the same:

While Eurozone manufacturing activity may have suffered its worst contraction around October, the December purchasing managers’ surveys indicate that the sector is still stranded well into recessionary territory and that conditions continue to be tough going into 2013. Indeed, manufacturing output looks highly likely to have contracted markedly in the fourth quarter of 2012, thereby contributing to an expected third successive modest drop in Eurozone GDP.
A further drop in manufacturing output seems very much on the cards for the first quarter of 2013, and any significant recovery in manufacturing activity still looks some way off. In particular, domestic demand in the Eurozone is likely to remain constrained by tighter fiscal policy in many countries, high and rising unemployment, and limited consumer purchasing power.

Eurozone manufacturing output down

Ireland was the only member of the 17-nation single currency bloc to grow its manufacturing output in December, according to purchasing managers' surveys.
Europe slipped further into recession in the last quarter of 2012, with new orders from factories continuing their slump.
Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) crept down to 46.1 in December from 46.2 in November. The index has been below the 50 mark, which divides growth from contraction, since August 2011.
factories cut their workforces at a faster pace than in the previous month and Germany, Europe's largest economy, saw output shrink for the 10th month in a row, and at a faster pace than in November.
Ireland remained the only Eurozone country seeing manufacturing growth in December, while activity was close to stabilizing in the Netherlands. The rate of decline remained significant in France, Spain and particularly Greece, where the index fell from 41.8 to 41.4. Italy saw manufacturing contract at the slowest rate for nine months, but the drop was still marked.
IHS Global Insight economist Howard Archer thinks 2013 will bring more of the same:

While Eurozone manufacturing activity may have suffered its worst contraction around October, the December purchasing managers’ surveys indicate that the sector is still stranded well into recessionary territory and that conditions continue to be tough going into 2013. Indeed, manufacturing output looks highly likely to have contracted markedly in the fourth quarter of 2012, thereby contributing to an expected third successive modest drop in Eurozone GDP.
A further drop in manufacturing output seems very much on the cards for the first quarter of 2013, and any significant recovery in manufacturing activity still looks some way off. In particular, domestic demand in the Eurozone is likely to remain constrained by tighter fiscal policy in many countries, high and rising unemployment, and limited consumer purchasing power.

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