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European manufacturing PMI falls to seven-year low

European manufacturing PMI falls to seven year low

The final Purchasing Managers’ Index data released on Monday showed that euro area manufacturing widened its contraction to hit its lowest level in seven months in September.  

Manufacturing PMI recorded 45.7 last month, revised up from a preliminary of 45.6, compared to a reading of 47.0 in August, according to IHS Markit data.

The manufacturing sector has signaled a contraction for an eighth successive months, where economic conditions deteriorated in the region’s biggest economies.  

“Germany is suffering the steepest decline, in part reflecting slumping global demand for autos and business machinery. While France bucked a wider downturn trend, even here growth was only very modest.”,” IHS Markit said.

The manufacturing PMI reading in Germany slipped to 41.7 in September, the weakest level in 123 months, from 43.5 in August.

The downbeat data would pile more pressure on ECB policymakers to support the ailing eurozone growth and inflation.

As of 08:40 GMT, the euro traded lower at $1.0891, but recovered from the session’s low of $1.0878, which is the lowest level since May 2017.

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