4 Sep 2012

EZ manufacturing down again

8:13 am on 4 September 2012

Eurozone manufacturing output shrank again in August. The Purchasing Managers Index showed the region's manufacturing sector contracted despite factories cutting prices.

Markit's final PMI was 45.1, above July's three-year low of 44.0.

However, it was the 13th consecutive month that it was below the 50 mark that indicates growth.

Germany's PMI read 44.7 in August, its sixth monthly fall.

Markit senior economist Rob Dobson said France and Germany are in reverse gear.

Italy and Spain's readings have been below 50 for more than a year. Only Ireland saw manufacturing output rise.

Latest gross domestic product (figures for the three months to the end of June showed the eurozone as a whole contracted by 0.2% and no growth is expected until next year.