- Chris Williamson, chief economist at Markit
The slowdown in Eurozone factory activity deepened last month, a sign that region's economy may have slipped further into recession in the last quarter of 2012. The report made by the Markit research firm, showed that Purchasing Managers' Index lowered edged down to 46.1 in December, down from November's 46.2, and remained below the 50 threshold since August 2011. German manufacturing sector shrank for the tenth consecutive month, while French data showed a decline in all but one of the past 17 months, and activity in Spanish and Italian factories contracted as well. The overall output index dropped to 46.0 from November's 46.1, and due to the continuing decline, factories cut their workforces at a faster pace than in the prior month.
"The euro zone manufacturing sector remained entrenched in a steep downturn at the end of the year. The region's recession therefore looks likely to have deepened, possibly quite significantly, in the final quarter," said Chris Williamson, chief economist at Markit.
"Manufacturers look to be in for another tough year in 2013, though prospects have brightened a little, as producers should benefit from signs of stronger demand in key export markets such as the United States and China."
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