'No sign of recovery' for Europe's manufacturers as UK orders also slow

Europe's manufacturers suffered a slump in demand last month with "no sign of a recovery", as UK factory owners also reported a slowdown in orders.

- Phillip Inman

Manufacturers across the eurozone reported a decline in demand for their goods in November, with France, Germany and Austria especially hard hit, according to the S&P Global purchasing managers' index (PMI).

The eurozone PMI fell to 45.2 last month, down from 46 in October, while in France the PMI slumped to 43.1, falling from 44.5 in October. A figure below 50 marks a period of contraction.

UK factory owners cut jobs and investment in November as output fell for the first time in seven months.

The UK PMI dropped to a nine-month low of 48 in November, from 49.9 in October and below a flash estimate of 48.6 posted last month.

In a further blow to Rachel Reeves's aspiration for more robust economic growth, UK manufacturers said exports and domestic order books were down amid a deterioration in the outlook for the sector.

The index showed that Brexit border checks continued to hit exports, while Reeves's poorly received first budget as chancellor undermined investment intentions. New orders fell at the fastest pace since February, S&P Global added.