Modest PMI Growth in China and the Eurozone in November

The HSBC China Manufacturing PMI report showed marginal improvement of operating conditions in the manufacturing sector, though both output and new order growth increased at their strongest rates in eight months. The 50.8 reading for November was up slightly from the earlier flash reading.

The final reading for the eurozone manufacturing PMI in November ticked up to 51.6 from the previous flash estimate of 51.5. Overall, manufacturing across the region enjoyed its best performance in more than two years, though the pace of growth remained modest. Output, new orders and new exports all expanded for the fifth straight month.

November data indicated an improvement in overall business conditions across the German manufacturing sector for the fifth consecutive month. The final PMI of 52.7 was the highest level in almost two-and-a-half years, despite a moderate drop in employment numbers.

The U.K. PMI reading came in at 58.4, its best level since February 2011. Employment in the sector rose at the fastest pace since May 2011.

In France, PMI sank to a five-month low of 48.4 as output and new orders fell at sharper rates. That remained below the 50 dividing line between expansion and contraction. Output, new orders and employment all showed sharper declines.

Spain saw new orders fall for first time in six months in November. The final PMI for the month fell to 48.6 from 50.9 back in October. Employment continued to fall sharply during the month.

Greek PMI checked in at 49.2, up from 47.3 in October and its highest level in 51 months. Employment continued to fall but at slower rate.

Markit also said India’s manufacturing economy returned to growth as output and new orders expanded, and Russia’s PMI fell below the 50 benchmark as output growth slowed in November.

See Markit’s PMI press releases for more details.