Final PMIs Confirm Slight Easing In Manufacturing Downturn

The German Final November manufacturing PMI was revised slightly higher from the flash release but remained clearly in contractionary territory at 42.6 (vs 42.3; 40.8 Oct). Overall, the survey points to the ongoing economic downturn slightly flattening out, with output and new orders posting the most moderate declines for six months. Key notes from the release are:

• "Expectations towards future activity meanwhile improved but remained pessimistic. The main negative development in November was an accelerated drop in factory employment."
• "Falling demand across the manufacturing sector was once again reflected in downward pressure on prices as competition for new work fuelled further discounting. The rate of decline in average factory gate charges was the weakest for five months"
• "Having eased for the second straight month, the rate of contraction in output was the weakest seen since May. Underlying data showed that this mainly reflected trends in the consumer and investment goods groupings, which moved closer to stabilisation"
• "Manufacturers' purchasing prices meanwhile remained under pressure amid a slowdown in demand for inputs."