Eurozone Preliminary Manufacturing PMI eases to 45.9 in December, EUR/USD little changed

The Eurozone manufacturing sector activity deteriorated once again this month and remained in contraction, the latest manufacturing activity survey from IHS/Markit research showed.

The Eurozone manufacturing purchasing managers index (PMI) came in at 86-month lows of 45.9 in December vs. 47.3 expected and 46.9 last while the Services PMI rose to four-month highs of 52.4 in the reported month vs. 52.0 expected and 51.9 last.

The IHS Markit Eurozone PMI Composite steadied at 50.6 in December.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“The Eurozone economy closes out 2019 mired in its worst spell since 2013, with businesses struggling against the headwinds of near-stagnant demand and gloomy prospects for the year ahead. “The economy has been stuck in crawler gear for fourth straight months, with the PMI indicative of GDP growing at a quarterly rate of just 0.1%.”

“There are scant signs of any imminent improvement. New order growth remains largely stalled and job creation has almost ground to a halt, down to its lowest for over five years as companies seek to reduce overheads in the weak trading environment and uncertain outlook.”

The shared currency defends mild gains near the 1.1130 region against the US dollar, as markets digest the downbeat manufacturing sector activity reports from both Germany and Eurozone.