Eurozone manufacturing sector is stuck in contraction, with PMI dropping to 48.8 in December to a nine-month low.

A survey shows that manufacturing activity in the eurozone further contracted in December. Last month, due to a further reduction in new orders, manufacturing activity in the eurozone plunged into a deeper contraction, with output declining for the first time in 10 months. The eurozone manufacturing Purchasing Managers' Index (PMI) from S&P Global fell from 49.6 in November to 48.8 in December. This is the lowest reading in nine months, and the second consecutive month below the 50 mark, which separates growth from contraction. The survey shows that manufacturing activity in the eurozone's 20 countries is declining universally. Germany, as the largest economy in the eurozone, performed weakest among the eight countries monitored, with the PMI reading hitting a 10-month low. Italy and Spain also fell back into the contraction territory. Cyrus de Larubia, chief economist at Hamburg Commercial Bank, said, "Demand for eurozone manufacturing products has slowed down again. Companies seem to neither have the ability nor the willingness to accumulate momentum for the coming year, instead showing caution, which is like poison for the economy." France became a rare bright spot, with its manufacturing PMI rising to a 42-month high. In the non-EU member country, the United Kingdom, benefiting from the relief brought by Chancellor of the Exchequer Rishi Sunak's budget, demand rebounded, driving manufacturing activity in December to the fastest growth pace in 15 months.