Deterioration of the production situation in the European Union and the UK

reported by Mehr News European manufacturers faced a drop in demand last month and even British factory owners reported a drop in orders and there seems to be no sign of improvement. According to P Global’s S and Purchasing Managers Index, manufacturers across the euro area in November They reported a decrease in demand for their goods, among which France, Germany and Austria experienced the highest decrease.

Eurozone PMI last month fell to 45.2 from 46 in October, while in France it fell to 43.1 from 44.5 in October. arrived The number below 50 indicates the period of contraction.

England

In England, factory owners cut jobs and investment in November as output fell for the first time in seven months. The British managers index fell to a nine-month low of 48 in November from 49.9 in October and below the immediate estimate of 48.6 last month.

Contrary to the hopes of Rachel Reeves the Prime Minister of England For the country’s stronger economic growth, British manufacturers said exports and domestic order bookings fell amid a worsening outlook for the sector. The index showed that Brexit border checks continue to hit exports, while the weak budget that Reeves has received as prime minister weakened investment targets. S end P Global added that new orders fell at the fastest pace since February.

Analysts believe the situation in the UK has been difficult for factories as problems overseas, including hold-ups at US ports and blocked supply routes in the Middle East, are expected to increase staffing costs in the party’s first budget. The worker has become worse. Reeves, who has put rejuvenating economic growth at the top of his agenda, has increased National Employer Insurance and raised the national minimum wage above next April, analysts said. The inflation rate has increased.

Eurozone

In the eurozone, Germany recorded the fastest output decline, Italy’s factory sector shrank at the fastest rate in a year, while France recorded the sharpest contraction in 10 months. Siros Dellarubia, chief economist at Hamburg’s Mercantile Bank, said the numbers look dire. It’s as if the Eurozone manufacturing slump will never end. There are no signs of an early recovery as new orders have fallen quickly and sharply.

Germany’s manufacturing sector remained firmly in contraction territory in November as companies grappled with weak demand and competitive pressure, highlighting ongoing challenges for Europe’s largest economy. Germany’s Purchasing Managers’ Index remained unchanged at 43 compared to October. This final reading is slightly lower than the initial reading of 43.2 and well below the 50-point threshold that separates growth from contraction.

At the same time, the rate of output declines and new orders eased slightly, reaching their lowest rate in six months. Employment, production prices and sales of exports have also decreased with a faster trend. Employment fell for the 17th straight month, and the rate of job losses accelerated to near a 49-month record in September, with nearly 29 percent of businesses reporting layoffs.

In France, while the country is facing political turmoil, lower levels of new jobs in domestic and international markets were blamed for the 22nd consecutive month of decline in the PMI in November.

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USA

U.S. manufacturing activity, however, fell less than expected in November as a measure of new orders rose for the first time in eight months and showed business confidence was gradually improving. is Data from the US Institute of Supply Management (ISM) index showed an increase of 1.9 points, the highest figure since March, and reached 48.4. The average forecast in the Bloomberg survey of economists shows an index of 47.5. While the latest figure marks the eighth consecutive month of contraction at a rate below 50, most categories that feed into the overall index showed improvement.

The progress in November led to the Purchasing Managers’ Index reaching its highest level since June, which indicates the stabilization of production after a two-year slump. A measure of new orders rose 3.3 points, the highest in five months and a sign of emerging optimism following the presidential election.

While measures of manufacturing activity and factory employment remain in contractionary territory, both have improved. The ISM manufacturing employment index increased by 3.7 points in November, which was the highest rate in more than two years and reached 48.1. The ISM report also showed a 5.5-point increase in the factory inventories index to 48.1, a month after falling at the fastest pace since June 2012. The improvement suggests that producers’ sharp reductions in inventories in September and October may have come to an end, helping fuel orders and output to rise further. The increase in new orders is a welcome change for manufacturers as the number of backlogs fell again in November to the lowest level since July.