Euro Zone Industrial Struggles: Manufacturing Contraction Resumes in September

Euro zone manufacturing activity contracted in September as new orders fell at their quickest pace in six months. The HCOB Eurozone Manufacturing PMI dropped to 49.8, signaling fragile industrial recovery. Manufacturing expanded marginally with a notable decline in employment conditions, highlighting challenges facing major economies like Germany, France, and Italy.


Devdiscourse News Desk | Updated: 01-10-2025 13:40 IST | Created: 01-10-2025 13:40 IST
Euro Zone Industrial Struggles: Manufacturing Contraction Resumes in September
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Manufacturing activity in the euro zone slid back into contraction territory in September, with new orders experiencing the fastest decline in six months, a recent survey revealed on Wednesday.

The HCOB Eurozone Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, decreased to 49.8 from August's 50.7. This drop signified the first instance of non-growth since surpassing the 50-point benchmark line in mid-2022. 'For seven consecutive months, euro zone production has inched upwards monthly, albeit sluggishly,' noted Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

Despite consistent factory output growth since March, the pace slowed significantly, with the index slipping to 50.9 from 52.5. Employment conditions deteriorated further as job cuts accelerated, marking the fastest rate in three months. Significant progress was made in reducing backlogs, but the euro zone faced a divergent performance, as the Netherlands led in expansion while economies like Germany, France, and Italy registered downturns.

(With inputs from agencies.)

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