Euro Area manufacturing PMI marginally up in November 2021

According to IHS Markit flash estimate, manufacturing business activity in the Euro Area picked up marginally in November 2021, increasing to 58.6 from 58.5 in the previous month. This is the first monthly increase of the manufacturing PMI since June 2021. Although the surge has been very minor, it beat estimates which predicted a pronounced decline due to the new wave of COVID-19 infections across the continent.

Euro Area picked up marginally in November 2021, increasing to 58.6 from 58.5 in the previous month

The input prices component of the manufacturing PMI decelerated to 89.8 in November, compared to 90.2 in the previous month, while output prices rose by 2 points m/m to 74.2. The suppliers’ delivery time sub-index rebounded in November, rising to 21.5 but it still remains near its historic low, reflecting the global supply chain blockages.

Unlike October, the overall Euro Area manufacturing PMI increase was not mirrored by the performance of the eurozone’s largest economy Germany, where manufacturing PMI dropped to 57.6 from 58.2 in the previous month, the lowest level since January 2021. On the other hand, in France the manufacturing PMI rose by 1.1 points m/m to 54.6.

The PMI ranges from 0 to 100, with a threshold value of 50, which divides expansion from contraction territory. If the index declines, but stays above 50, it means that the sector is still expanding, but at a slower rate.

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