RTTN:Eurozone Manufacturing Sector Remains In Contraction
Activity in Eurozone's manufacturing sector decreased for the fifteenth consecutive month in October, though at a marginally slower rate than estimated earlier, as domestic market conditions remained subdued and trade flows deteriorated further, final data released by Markit Economics showed Friday.
The seasonally adjusted purchasing managers' index (PMI) decreased to 45.4 in October from 46.1 in September. The latest reading was slightly higher than 45.3 seen in the preliminary estimates. A PMI reading below 50 indicates contraction, while one above suggests growth.
New business declined for the seventeenth successive month, owing to weak domestic demand and declining international trade.
Reflecting the fall in new orders, production at factories in the euro area declined for the eighth successive month in October, and the rate of fall accelerated from the previous month. Companies lowered their workforces for the ninth consecutive month.
Input costs rose for the second straight month in October, with the rate of inflation picking up slightly since September. Meanwhile, firms reduced their output prices amid weak demand and strong competition.
