- Chris Williamson, chief economist at Markit
Eurozone factory orders expanded for a fifth month in a row in November, with the corresponding gauge accelerating at the fastest pace for more than two years, a survey from Markit showed Monday. The final manufacturing PMI stood at 51.6 in November, up from 51.3 a month earlier, slightly outpacing analysts' forecasts. A good sign is that the index has not slipped in the negative territory since July, when it reached 48.8. Moreover, this leading indicator of economic health has been improving since August 2012, after it hit a low of 44.0. While this data can be interpreted as a welcoming sign for Europe, they also mask considerable variations between individual members of the 17-nation bloc. In November such countries like Netherlands, Austria and Germany, all posted readings greatly above the threshold level of 50. In contrast, the full list of countries reveals some surprises. Even though France is not one the members that needs a bailout, it was at the bottom of the list in November, with the corresponding gauge standing at 48.4.
Some analysts may consider these numbers as highly volatile, since they represent monthly changes, but one thing that almost all countries have in common is weak job markets. A sub-index of hiring plans contracted for the 22nd consecutive month, suggesting even more job cuts will come.
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