Posted 1/2/2024, 10:46:00 AM
European Manufacturing Slumps Amid High Rates and Falling Demand
- French manufacturing has collapsed into a "downward spiral", with the purchasing managers' index falling to 42.1 in December, the lowest since May 2020
- UK manufacturing contracted for the 17th straight month in December, with job losses recorded for the 15th consecutive month
- Germany's manufacturing downturn eased for the 5th month in a row, with its PMI improving to 43.3
- The outlook for manufacturers remains "decidedly gloomy" amid high interest rates and cost-of-living crisis hurting demand
- Suppliers are reducing raw material prices and vendor lead times continue to improve, having some positive effects on strained supply chains