Euro zone Manufacturing Activity falls steeply in November

Euro zone manufacturing activity fell in November as the Markit-s Purchasing Managers- Index (PMI), an important parameter to judge the performance of manufacturing sector, fell to just 46.4 in November compared to 47.1 in the previous month of October. Any reading lower than 50 indicates contraction and reading of 46.4 is considered to be deep decline in the manufacturing activity. This is the lowest euro zone PMI reading in last 2 years.

Manufacturing activity dropped in all the Euro zone countries including its two biggest economies Germany and France. The drop was mainly due to lower domestic demand and the current euro zone debt crisis. The dismal performance of the euro zone manufacturing activity is expected to continue until the euro zone debt crisis is resolved and confidence is restored in the entire region.