Manufacturing activity in the euro zone declined for the fifth straight month in December, although less sharply than earlier in the fourth quarter, according to a survey of purchasing managers released Monday. The survey is consistent with other indicators of recent activity, and together the numbers suggest the eurozone economy contracted during the final three months of the year.
Beyond problems within the currency area, the survey suggests manufacturers face increasingly anemic demand from other parts of the global economy. While the rate of decline in output eased, there are few signs that a rebound is imminent, with eurozone new orders falling for a seventh straight month. The threat of a new recession already prompted the European Central Bank to cut its key interest rate in November and December. Its governing council meets next week, and is expected to ease policy again. The eurozone’s economic woes continue to have an impact on manufacturers elsewhere that have close ties to the currency area.
EasyForexNews Research Team