Manufacturing data picks up in the Eurozone
(Kitco News) - During the EU session there has been manufacturing PMI data from the major nations in the continent. The most important is probably Germany as they are a strong industrial powerhouse in the Eurozone.
German Manufacturing PMI for November hit 57.9 vs the analyst consensus estimate of 56.5. This is good news as it shows the sector is in expansionary territory but is slightly below the previous of 58.2. Looking closer into the report the headline Flash Germany Composite Output Index reading is at 5 month low but manufacturing is boosting the nation. The report also noted service providers recorded the most notable improvement in sentiment since October, though it was manufacturers who generally remained the most upbeat about the outlook.
On another positive note, there was some discussion on employment numbers. The report said the drag from manufacturing job losses meanwhile continued to ease, with November seeing the slowest reduction in factory workforce numbers since June 2019. The slowdown in manufacturing staff cuts was consistent with signs of growing capacity pressures at factories, with goods producers noting another notable rise in work-in-hand (i.e. orders received by not yet completed) in November. This is clearly good news for the future projections for the industry.
In the UK the manufacturing number also beat expectations but this could be because of a last-minute rush for products before Brexit. Chris Williamson, Chief Business Economist at IHS Markit noted, "Some comfort comes from the data suggesting that the impact of the lockdown has not been as severe as in the spring, and manufacturing has also received a significant boost from inventory building and a surge in exports ahead of the UK’s departure from the EU at the end of the year, providing a fillip for many companies. However, while the lockdown will be temporary, so too will this pre-Brexit boost".
Later in the session, we will be looking out for the US numbers, Flash manufacturing PMI for November is expected to be in the region of 53.0 against the previous of 53.4.