Eurozone manufacturing growth remains strong in November - IHS Markit

According to the report from IHS Markit, the seasonally adjusted Eurozone Manufacturing PMI fell slightly during November but remained at a level indicative of strong growth. Although the headline index slipped to 53.8, from 54.8 in October, it was slightly better than the earlier flash reading and signalled an improvement in manufacturing operating conditions for the fifth successive month. Moreover, growth remained well above the long-run survey average.

There was some notable divergence in performance across the broad market groups data during November. On the one hand, the capital and intermediate goods sectors continued to expand at marked monthly rates. However, in contrast, consumer goods producers registered a modest deterioration in operating conditions for the first time in six months. 

For the fifth successive month an increase in manufacturing production was recorded, although growth eased on October’s two and-a-half year peak and was the slowest since July. A similar trend was seen for new orders, where growth eased to the weakest in the current five-month sequence amid a slowdown in gains across domestic and external markets. Indeed, new export orders rose at the slowest pace since August, though growth remained solid.

Increased production and order requirements meant that firms continued to increase their purchasing activity, with growth amongst the best seen in the past two-and-a-half years. This served to further add pressure on suppliers, with average lead times for the delivery of inputs deteriorating to the greatest extent for seven months.

Finally, looking ahead to the coming 12 months, business confidence improved to its highest for over two-and-a-half years. Dutch, Italian and German companies were the most confident manufacturers in November.