Eurozone November Manufacturing PMI at 43.8... Recession Eases but Remains Frozen

Eurozone companies are experiencing a slight slowdown in the pace of economic contraction. However, business sentiment remains frozen, making it difficult to expect an economic rebound in the near term.

According to major foreign media on the 23rd (local time), the Hamburg Commercial Bank (HCOB) Eurozone Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose from 43.1 last month to 43.8 this month. This exceeds market expectations (43.4) and marks the highest level in six months.

The Manufacturing PMI is a leading indicator of manufacturing activity, with readings above 50 indicating expansion and below 50 indicating contraction. Although the Eurozone economy remains in a contraction phase, the slight increase in the Manufacturing PMI this month suggests that the pace of the downturn has somewhat slowed.

The Services PMI rose from 47.8 last month to 48.2 this month, surpassing market expectations (48.1).

The Eurozone Composite PMI recorded 47.1 this month. This is not only an increase from 46.5 last month but also exceeds market expectations (46.9).

ING stated, "The Eurozone's November PMI did not provide much evidence that the region's gross domestic product (GDP) growth rate will turn positive in the fourth quarter," adding, "While it is good news that the recession has not deepened, the Eurozone is likely in a very shallow technical recession at present." They further analyzed, "Although the recession has not worsened, there are hardly any signs of recovery."

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