10/1/2019, 10:00 AM (Source: TeleTrader)
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Eurozone manufacturing activity declines in September

The manufacturing sector in the Eurozone continued to contract in September according to a report released by IHS Markit on Tuesday. The Eurozone Manufacturing Purchasing Managers Index (PMI) hit the lowest level since October 2012 as it stood at 45.7. The figure marks a decrease from 47 recorded in August but was still higher than analysts had expected.

Investment goods sectors contributed most to the decline in operating conditions but intermediate and consumer goods also reported a deterioration in conditions. Among the countries covered by the survey, the largest contraction in manufacturing was observed in Germany where the index stood at 41.7, followed by Austria, where the PMI stood at an 83-month low of 45.1.

"The health of the Eurozone manufacturing sector went from bad to worse in September, with the PMI survey indicating the steepest downturn for nearly seven years and sending increasingly grim signals for the fourth quarter," Chris Williamson, chief business economist at IHS Markit, said. "The September PMI points to manufacturing output falling at a quarterly rate in excess of 1%, representing a severe drag on GDP in the third quarter," he added.

Baha Breaking News (BBN) / NP