The Eurozone manufacturing industry is in deep contraction, and the PMI fell to 48.8 in December, a nine-month low

The Zhitong Finance App learned that the survey showed that manufacturing activity in the Eurozone contracted further in December. Last month, manufacturing activity in the Eurozone contracted deeper due to a further decline in new orders, and production declined for the first time in 10 months.

S&P Global's Eurozone Manufacturing Purchasing Managers' Index (PMI) fell from 49.6 in November to 48.8 in December. This was the lowest reading in nine months, and for the second month in a row it fell below the 50 boom-bust line.

According to the survey, manufacturing activity in the 20 Eurozone countries showed a general decline. As the largest economy in the Eurozone, Germany had the weakest performance among the eight countries monitored, and the PMI reading hit a 10-month low. Italy and Spain also fell back into the contraction range.

Cyrus de la Rubia, chief economist at Commerzbank Hamburg, said: “Demand for products manufactured in the Eurozone is slowing down again. Companies appear to be neither able nor willing to build up momentum for the coming year; instead, they are showing a cautious attitude, which is tantamount to poison the economy.”

France became a rare bright spot, and its manufacturing PMI jumped to a 42-month high. In the UK, a non-EU member state, benefited from relief brought about by Chancellor of the Exchequer Rachel Reeves's budget, and the recovery in demand drove manufacturing activity to the fastest growth rate in 15 months in December.