Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) was at 45.4 points in October, down from September's 46.1 points, but above the earlier flash estimate of 45.3. The Markit Final Eurozone Manufacturing PMI was below the neutral 50 points for the 15th successive month.
The downturn of business conditions not only deepened, but also widened during the latest survey period, while rates of contraction accelerated in Germany, Italy, Spain, Austria and Greece. Although the downturn in France eased slightly, it remained stronger than the euro area average. Only the Irish PMI stayed above the neutral 50.0 mark, as the Dutch PMI edged back into contraction territory.
Manufacturing output in the euro area declined for the eighth month in a row during October, and at a faster rate than in the previous month. Meanwhile, the level of incoming new export orders in the euro area declined for the 16th month running in October.
Rob Dobson, senior economist at Markit, said, "The manufacturing sector opened the final quarter of 2012 on a disappointing footing, as the downturn in the sector gathered pace. News from the price front was also less than positive. Cost inflation has picked up sharply in recent months, which is providing an additional unwelcomed squeeze on margins at a time when weak demand and strong competition are constraining pricing power."