Eurozone Manufacturing Continues Long Downturn

In October, the eurozone manufacturing sector showed signs of stabilization, with activity contracting for the 28th consecutive month but at a slower pace. The HCOB manufacturing Purchasing Managers' Index (PMI) rose to 46.0, slightly above the preliminary estimate of 45.9, indicating a continued contraction but less severe than before. Output increased to 45.8, up from September's 44.9, while the new orders index improved to a four-month high of 44.2. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted that while the recession did not deepen, business confidence fell to a one-year low. The European Central Bank's recent interest rate cuts are part of a strategy to manage inflation, with expectations of further reductions in December. Despite the gradual easing of declines, the manufacturing downturn persists, marking the longest slump since PMI surveys began in 1997.