MNI 5 Things: EZ Nov Manufacturing PMI Lowest Since Aug '16

     LONDON (MNI) - Manufacturing across the eurozone fell to the lowest level

in over two years, data released by IHS Markit showed. 

     The November Purchasing Managers manufacturing index fell to 51.8 from

October's 52.0, but is was above the preliminary November read of 51.5.

     Here are five points of interest.

     1.) Italy Drops Further Below Change/No Change Threshold: Italy's final PMI

reading for November came in at 48.6, 0.6 points lower than the 49.2 recorded in

October. This was a 48-month low and is the second successive monthly

deterioration in manufacturing operating conditions. Thus, it appears that the

sector is struggling.

     2.) Weak Export Trade Beginning To Pinch the Investment Goods Sector: The

data showed weakness was stemming from the investment goods sector as capital

goods producers registered net falls in both production and new work. Export

trade was down for a third month running, with anecdotal evidence in Germany

citing the slowdown in China as a reason for weak export orders.

     3.) Germany Dips to 31-Month Low: The Germany manufacturing sector saw new

orders contracting at its fastest pace for 4 years. The lower order books

reflected a drop-in demand from abroad which in turn meant export sales were

down by the greatest extent since June 2013. Given this, it is not surprising

the reading of 51.8 was a 31-month low.

     4.) Autos Struggling To Move Up The Gears Take Its Toll On Manufacturing:

One of the reasons cited for faltering demand was in part down to challenging

conditions in the autos industry. The overall production of manufactured goods

rose marginally and at the weakest pace in nearly five-and-a-half years.

     5.) The Smallest Of Bright Spots Evidenced In Spain: If there was any

positives to take from the data, it was that Spain's manufacturing PMI reached a

3-month high in November, rising to 52.6 from 51.8 previously. However,

overshadowing this is the fact that business confidence in the Euro Area remains

at its weakest in around 6 years.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$E$$$,M$X$$$,M$XDS$]