LONDON (dpa-AFX) – The mood in the industrial companies of the Eurozone deteriorated slightly again in December. The S&P Global Purchasing Managers’ Index (PMI) fell by 0.1 points to 45.1 points compared to the previous month, as S&P announced on Thursday in London after a second round of surveys. This meant that an initial assessment, which had shown stagnation at 45.2 points, was revised slightly downwards.
The indicator therefore remains well below the expansion threshold of 50 points, which indicates a contraction in economic activity. “Even in December, the industry cannot announce any good news,” wrote Cyrus de la Rubia, chief economist at S&P partner Hamburg Commercial Bank.
According to de la Rubia, things continue as before, namely downwards. Incoming orders have even fallen more sharply than in the previous two months, which has dashed hopes of an early recovery. According to the expert, this assessment is supported by the accelerated decline in order backlogs.
Looking at individual countries, the sub-indicators of the Purchasing Managers’ Index continue to signal a decline in economic activity, particularly in France and Germany. In Italy, the index rose more than expected, but remained below the expansion threshold.
Spain continues to stand out positively among the major economies of the Eurozone, even though the indicator did not rise as significantly in December as experts expected. Spain has the advantage of being less exposed to China compared to Germany, France and Italy, de la Rubia continued. According to the expert, the relatively low energy costs also helped Spain get through the crisis better. However, the country will certainly not be able to get the eurozone economy going again as a whole; with a share of around twelve percent of the monetary union’s gross domestic product, it is too small for that.
The data at a glance:
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Region/Index December Forecast Preliminary Previous Month
EURO AREA
Industry 45.1 45.2 45.2 45.2
GERMANY
Industry 42.5 42.5 42.5 43.0
FRANCE
Industry 41.9 41.9 41.9 43.1
ITALY
Industry 46.2 45.0 — 44.5
SPAIN
Industry 53.3 53.5 — 53.1°
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