Eurozone Manufacturing Falters as Asia's Industries Gain Ground

Manufacturing in the eurozone struggles with shrinking activity in December, while Asia's factories rebound due to increased export orders and demand for AI. Eurozone PMI falls, led by Germany's decline, while France shows positive growth. Asia sees recovery, particularly in South Korea and Taiwan.

The eurozone's manufacturing sector experienced a deeper contraction in December as factory activity declined for the first time in 10 months, according to private surveys.

The HCOB Eurozone Manufacturing PMI fell to 48.8, marking the lowest reading in nine months, highlighting a widespread decrease in the 20-nation bloc. Notably, Germany recorded a 10-month low in performance while Italy and Spain also faced contractions.

Conversely, Asia's manufacturing sectors, particularly in South Korea and Taiwan, showed promising growth driven by rising export orders and AI demand. This recovery is bolstered further from an unexpected surge in China's factory activity, offering a positive outlook for Asia's export-oriented economies.

(With inputs from agencies.)