The eurozone industry concluded the year 2023 with a decline in activity, reported S&P Global on Tuesday, estimating that the area of the common European currency is likely in recession.
The Purchasing Managers’ Index (PMI) in the eurozone industry was almost unchanged in December compared to November, standing at 44.4 points, determined by Hamburg Commercial Bank (HCOB), which compiles reports for S&P Global. Values below 50 points indicate a decline in activity, while those above indicate growth.
– The manufacturing sector of the eurozone recorded a decline at the end of 2023, with a continuous reduction in production and job losses in the industry for the seventh consecutive month – stated HCOB’s chief economist Cyrus de la Rubia.
The PMI remained more or less at the level from November, signaling a continuous decline in activity and demand for industrial goods, added the economist from the German bank.
Data suggests that the eurozone GDP fell in the fourth quarter and that the eurozone has entered a recession, emphasized De la Rubia.
– Regarding the four leading economies of the eurozone, the December scale of industrial results is a painful read. It is least painful in Spain, whose PMI signals a milder decline in economic activity than in Italy, whose industry records a milder decline than that in Germany. France is at the bottom – he noted.
Business leaders, however, expressed greater optimism in forecasts for 2024, likely because they anticipate that the European Central Bank may lower key interest rates, he speculated, highlighting among the possible motives for improved expectations and lower energy prices.
