Eurozone PMI manufacturing was finalized at 53.2 in September, revised down from down from August’s 54.6. Key findings are “exports rise only slightly, weighing on growth of total orders and production”, and, “global trade concerns push confidence down to near three-year low”.
Among the countries, German PMI manufacturing was finalized at 25-month low at 53.7. Austria PMI manufacturing dropped to 23-month low at 55.0. Spain reading dropped to 51.4, 25-month low. Italy reading dropped to 50.0, 25-month low.
Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“Eurozone manufacturing shifted down yet another gear at the end of the third quarter. The sector has seen booming growth at the start of the year rapidly fade to the worst performance for two years in September as production and jobs growth have slowed in response to a stalling of export trade.
“The survey paints the worst trade picture for over five years, with export growth having slumped sharply from a series record high in late 2017 to near-stagnation in September.
“The slowdown can be linked to sluggish demand and increased risk aversion among customers, often linked to worries about trade wars and tariffs, but also ascribed to rising political uncertainty and higher prices.
“Forward-looking survey indicators suggest the worst is yet to come: optimism about the year ahead is close to a three-year low, inflows of new orders and input buying are the weakest for over two years and backlogs of work are dropping for the first time in over three years.
“Production also continues to run ahead of order book growth, which is a key sign that output and jobs growth will be reined-in further as we move into the fourth quarter unless demand revives.
“Export-led slowdowns are clearly evident in Germany, France, Italy, Spain and Austria, but the weakening picture is by no means universal, with the Netherlands and Ireland being notable in continuing to report strong growth of both output and exports.”
Also from Eurozone, unemployment rate dropped to 8.1% in August, below expectation of 8.2%.
