Economic Buzz: Eurozone Manufacturing PMI Marks Lowest Reading In Ten Months In December

3 Jan 2022 , 03:39 PM

Eurozone IHS Markit Manufacturing PMI fell to 58.0 during December, down from 58.4 in November and its lowest reading in ten months. Sector data revealed that consumer goods makers drove the slower improvement in manufacturing conditions, with intermediate and capital goods producers registering marginally quicker upturns. December PMI data showed a further easing of the supply chain crisis as average lead times lengthened to the softest extent since February. Firms took advantage of this relative gain and added purchases to their inventories at the fastest rate ever recorded by the survey, outpacing the previous record set in November by a notable margin. However, despite alleviating pressures on supply chains, manufacturing sector conditions continued to disappoint, with output growth remaining unchanged from that seen during November (which was the second-weakest seen since production growth resumed in July 2020). Meanwhile, rates of input cost and output price inflation eased, but remained among the fastest ever seen by the survey.

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