LONDON (Reuters) – Activity in the euro zone’s private manufacturing sector contracted in December for the 18th month in a row, according to the S&P Purchasing Managers’ Survey, which showed few signs of an imminent rebound of the bloc’s economy, probably in recession.
The final HCOB PMI index for the sector stood at 44.4 in December after 44.2 in November and a “flash” estimate at 44.2, but remains firmly anchored below the 50 mark which separates a contraction from growth of the activity.
A sub-index measuring production, which enters into the calculation of the composite PMI which will be published on Thursday, fell to 44.4 in December from 44.6 the previous month.
The one measuring new orders stood at 42.0 last month after 41.5 in November.
This trend signals a contraction in the euro zone’s gross domestic product (GDP) in the fourth quarter of 2023, according to Cyrus de la Rubia, an economist at Hamburg Commercial Bank.
The euro zone economy contracted by 0.3% in the third quarter according to official data and a second consecutive quarter of contraction would mean a recession.
(Written by Jonathan Cable, Blandine Hénault for the French version)
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