Euro Area Manufacturing PMI Revised Lower

The HCOB Eurozone Manufacturing PMI was at 45.1 in December of 2024, edging lower from 45.2 in the previous month missing the initial market expectation of 45.3 after being revised lower from the flash estimate of 45.2.

It was the sharpest decline in manufacturing activity in three months to extend the ongoing two-year contractionary streak.

New orders continued to decline at a sustained pace, driving factories to drop output the most since the corresponding period of the previous year.

The decline in output took place despite a fresh decrease in work backlogs.

Consequently, lower demand for capacity drove manufacturers to reduce their workforce, especially in Germany and France, while the bloc recorded an aggressive decline in purchasing intakes.

On the price front, output costs charges fell for the fourth month.

Looking forward, manufacturer’s confidence about future activity continued to be muted, albeit it improved from last month.