Eurozone PMI index remains weak
The eurozone PMI index for October remains lacklustre whilst reflecting countinuing divergence between respective eurozone countries, according to the latest data released by Markit.
While the average eurozone PMI index improved slightly from 50.6 compared to 50.3 in September, it remained only marginally above the neutral level of 50.0 mark.
Ireland, the Netherlands and Spain showed an improvement of their manufacturing conditions, yet average growth was held back by downturns in Italy, Greece, France and Austria.
New orders fell in Germany, France, Italy, Austria and Greece, in contrast to the strong gains registered in Spain, the Netherlands and Ireland.
Rob Dobson, Senior Economist at Markit said: “Perhaps most worrying is the trend in new orders, a key bellwether of future output growth, which declined for the second month running.”
Meanwhile, improvements in the manufacturing sector were largely driven by external demand, while average domestic demand remained weak. “It is hard to see any significant near-term boost to performance while market demand remains insipid and beset by lacklustre domestic conditions, slowing export growth and ongoing economic uncertainties,” Dobson argued.
Average input and output costs declined in October, largely due to a further decline in oil prices.
The monthly Markit PMI index is based on manufacturing data collected among 3000 firms across Germany, France, Austria, Spain, Greece, Italy, Ireland, Netherlands, Austria and Greece.