Courtesy of Mish.
This morning Markit released Eurozone, France, and Germany preliminary PMI reports. All show further deterioration.
Germany
Markit Flash Germany PMI® shows Manufacturing weakness behind moderate drop in German private sector output during October.
Summary
At 48.1 in October, the seasonally adjusted Markit Flash Germany Composite Output Index was down from 49.2 during September and signalled a further moderate reduction in overall private sector business activity. The index has now posted below the neutral 50.0 value for six consecutive months. With the latest reading close to the average for Q3 2012 (47.9), the latest survey suggests an ongoing lack of momentum across the German private sector economy.
Lower levels of output were recorded in both the manufacturing and service sectors during October, with the former indicating the sharper decline over the month. The slight drop in services activity followed signs of stabilisation during September, while the sub-50 index reading for manufacturing production was the seventh in as many months.
Manufacturers pointed to a sharp and accelerated decrease in new orders intakes during October, thereby extending the current period of decline to 16 months. Reports from survey respondents overwhelmingly cited weakness in export markets, especially southern Europe. A number of firms also mentioned subdued demand from the automobiles sector. Some panel members pointed to signs of a slowdown in Asia, especially for investment goods. Overall levels of new work from abroad in the manufacturing sector dropped at the second-fastest rate since April 2009 (only exceeded by the fall this August).
Comment
Commenting on the Markit Flash Germany PMI® survey data, Tim Moore, Senior Economist at Markit said:
“Germany’s private sector suffered a disappointing lack of momentum in October, reversing the signs of a step in the right direction during the previous month. The ‘flash’ output index fell back from September’s four-month high largely in response to a sharper drop in manufacturing production.
France
Markit Flash France PMI® shows further marked contraction of French private sector output at start of Q4.
Summary
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