The downturn in the euro zone manufacturing sector deepened at the start of the second quarter of the year. Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) was at 46.7 points in April, down slightly from 46.8 in March but above the earlier flash estimate of 46.5. The Markit Final Eurozone Manufacturing PMI was below the neutral 50 points signalling a deterioration in business conditions since August 2011.
All of the national PMI indices signalled contraction in April. Rates of decline accelerated in Germany, Ireland and Austria, but eased in France, Italy, Spain, the Netherlands and Greece. The four worst performing nations nonetheless remained France, Italy, Greece and Spain.
Manufacturing output in the euro area contracted at the fastest pace year-to-date, while the rate of decline in new export orders accelerated to a four-month record in April, with Italy the only nation to see even a minor increase in new export business.
Chris Williamson, chief economist at Markit, said, "There is nothing here to suggest that manufacturing will turn the corner and stabilise any time soon."
