Eurozone manufacturing activity continues to contract Euro zone debt crisis worsens

The euro zone manufacturing activity continues to contract for the consecutive fifteenth month in October due to worsening debt crisis and lower economic activity. The Markit compiled Purchasing Managers Index (PMI), an important parameter to judge the manufacturing sector activity dropped to 45.4 in October compared to 46.1 in September. Any reading lower than 50 indicates contraction in the respective sector.

Manufacturing activity contracted for Germany as well which is considered to be the economic power house of the entire region. PMI for Germany stood at 46 which is a real concern for the euro zone leaders. Manufacturing activity slowed at faster pace in the countries like Italy, Spain, France, Austria etc. Euro zone debt crisis is worsening with continuous contraction in manufacturing activity along with increasing unemployment rate. With these indicators, euro zone debt crisis does not seem to be resolved anytime soon and the region may take couple of more quarters to come back to growth path.