Eurozone Manufacturing Faces Setback Amidst Falling New Orders

Eurozone manufacturing returned to contraction in September due to a steep decline in new orders, as reported by the HCOB Eurozone Manufacturing PMI. Production continues to rise marginally, but employment and business confidence face downturns. A notable regional disparity in growth is evident across the eurozone.

In September, eurozone manufacturing activity slipped back into contraction, with new orders falling at their fastest rate in six months, according to an HCOB Eurozone Manufacturing PMI survey.

The index dipped below the growth threshold to 49.8 from 50.7 in August, indicating the industrial sector's shaky recovery.

Production rose for the seventh consecutive month but at a slower pace, while job cuts and a decline in outstanding orders overshadowed some areas of growth like the Netherlands.

(With inputs from agencies.)