Mixed Manufacturing Results Across Europe in November

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Spain’s Manufacturing Modest Growth

Spain’s manufacturing sector experienced a slowdown in growth during November, as the HCOB manufacturing Purchasing Managers’ Index (PMI) recorded a decline to 53.1, down from 54.5 in October. This figure fell short of analyst predictions, which anticipated a PMI of 53.5. The decrease in new orders and overall output was partly attributed to severe flooding in the eastern Valencia region, which disrupted operations from late October. Despite this setback, Spain maintained manufacturing growth for the tenth consecutive month, diverging from the overall European trend.

Encouraging Signs for Turkish Manufacturing

In Turkey, the manufacturing sector showed signs of recovery, with the Istanbul Chamber of Industry’s manufacturing PMI for November climbing to 48.3 from October’s 45.8. While still indicating economic contraction as the PMI remains below 50 for the eighth month, this improvement signifies the smallest decline since May. The slowdown in decreases for new export business and new orders suggests a gradual rebound in demand. Additionally, job creation accelerated at the fastest pace since July 2023, although companies were still grappling with challenges in attracting new business.

France Faces Weak Manufacturing Decline

French manufacturing figures painted a grim picture, with the final HCOB manufacturing PMI for November dropping to 43.1 from October’s 44.5. This result fell below market expectations and marked the steepest decline since January, representing the 22nd consecutive month of economic contraction. New orders plummeted due to weak international demand, particularly from Germany and the United States, along with reduced domestic demand. The downturn led to decreases in inventory and purchasing activity as companies prioritized cash flow, especially in the construction, automotive, and cosmetics sectors, resulting in ongoing job losses.

German Manufacturing Steady but Constricting

Germany’s manufacturing sector remained stable, with the final HCOB manufacturing PMI for November holding at 43.0, unchanged from October but slightly below expectations. Despite this stability, the manufacturing sector still contracted, marked by continued declines in new orders and output, albeit at a slower pace than in October. Employment suffered a deeper decrease, alongside falling stock levels and purchasing activity. Competitive pressures and weak demand further contributed to reduced output and input costs, although business expectations improved for the second month, indicating a desire for recovery amid ongoing economic and political uncertainties.

Europe’s Uneven Manufacturing Landscape

November’s manufacturing data reveals a mixed landscape across Europe, with Spain showing resilience amidst challenges while Turkey hints at a potential rebound. In contrast, France and Germany struggle with declining metrics that underscore ongoing economic constraints. The varied performance of these countries’ manufacturing sectors highlights the complex and interconnected nature of Europe’s economic recovery efforts, leaving room for both optimism and caution as stakeholders navigate uncertainty in the months ahead.


SOURCE: Ref Image from EU Science Hub

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