- Chris Williamson, chief economist at survey compiler Markit
Factory output of the Euro zone's top economies: Germany, France and Italy, remained in the red territory in November, while activity in Spain's manufacturing sector continued to increase. German manufacturing unexpectedly shrank last month, with the corresponding index falling to 49.5 from 51.4, below the 50-point threshold, which separates contraction from growth. The final French manufacturing PMI came in at 48.4, down from 48.5 in October, being in the contraction zone since May. In Italy, the manufacturing PMI reading remained at 49.0 in November, unchanged from the previous month, marking 17th straight month of no growth in the sector. On top of that, Italy's GDP contracted 0.1% on quarter in the three months through September, while on annual basis, the Euro zone's third biggest economy booked a negative 0.5% GDP growth. Spanish manufacturing output data came as a bright spotlight in the never-ending streak of negative news. Spanish manufacturing PMI rose to 54.7 last month, exceeding 52.6 recorded in October and beating market forecasts for a 52.1 reading. The headline index has been in the expansion territory above the 50-mark threshold for the whole year, after falling into contraction in November last year.
Overall, Euro zone manufacturing growth stalled in November and new orders declined at the fastest pace in 19 months. Markit's final manufacturing PMI was 50.1, the lowest since June 2013.
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