What's happened
Manufacturers in Europe and the UK reported significant declines in demand for November 2024, with the eurozone PMI dropping to 45.2 and the UK PMI falling to 48.0. Factors include geopolitical tensions, Brexit impacts, and rising costs from recent budget announcements.
Why it matters
What the papers say
According to Phillip Inman in The Guardian, the eurozone's manufacturing sector is experiencing a prolonged recession, with Dr. Cyrus de la Rubia stating, "These numbers look terrible. It’s like the eurozone’s manufacturing recession is never going to end." Meanwhile, Anna Wise from The Independent highlights that the UK manufacturing PMI has recorded two consecutive months of contraction, attributing this to weaker demand and rising geopolitical tensions. The South China Morning Post notes that while China's PMI showed slight improvement, uncertainties remain due to potential trade conflicts with the US, indicating a complex global manufacturing landscape. These contrasting perspectives illustrate the multifaceted challenges facing manufacturers across different regions.
How we got here
The manufacturing sector has been under pressure due to various factors, including Brexit-related challenges, geopolitical tensions, and recent budgetary changes in the UK that have raised costs for manufacturers. These issues have compounded existing economic uncertainties.
Common question
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