Eurozone PMI manufacturing index increased in October

European PMI data as of November 2024 differ across Europe. Spain is showing strong growth with a PMI of 54.5, the highest level in 32 months, while Ireland and Greece are also showing growth with PMIs of 51.5 and 51.2 respectively. Germany, on the other hand, is showing signs of improvement, although in contraction territory, with a PMI of 43, a three-month highest level. France is stable with a PMI of 44.5, but again in the contraction zone. However, the situation is different in the Netherlands and Austria, with PMI values decreasing to 47 and 42, respectively, indicating contraction.

Hamburg Commercial Bank's Chief Economist Cyrus de la Rubia emphasized that while the downturn in manufacturing did not deepen further, difficulties remain. Noting that low input costs created a "deflationary" environment, de la Rubia added that increased competition, including from China, caused companies to pass on price decreases to buyers, resulting in compressed profit rates.