Euro zone manufacturing activity continues to drop in December

Euro zone manufacturing sector activity continues to drop for the 5th month in a row in December due to lower industrial activity and uncertain euro zone economic outlook. The Markit Eurozone manufacturing PMI (Purchasing Manager Index) came as 46.9 in December compared to 28-month low value of 46.4 in November. Any reading lower than 50 indicates contraction.

Among 17 euro zone nations, not a single country saw an increase in manufacturing activity in December. Austria saw the highest PMI data of of 49, followed by France-s 48.9 and Germany-s 48.4. This dismal manufacturing activity data confirms that euro zone industrial sector may be heading for another recession in 2012.

The only solution left is the resolution of current euro zone debt crisis which is not possible within a short span of time. Euro zone manufacturing sector can only improve with the improved condition of euro zone sovereign debt crisis.