According to the report from IHS Markit, operating conditions in the euro area’s manufacturing economy deteriorated in September to the greatest degree in just under seven years. 

After accounting for seasonality, the Eurozone Manufacturing PMI fell to 45.7, down from 47.0 in August and its lowest reading since October 2012. Latest data indicated the eighth successive month that the PMI has posted below the 50.0 no-change mark.

All three market groups covered by the survey showed a deterioration in operating conditions. Investment goods producers registered the sharpest deterioration, followed by intermediate goods. Consumer goods recorded a PMI reading below the 50.0 no-change mark for the first time since November 2013. 

The region’s manufacturing downturn was led in the main by rapidly deteriorating operating conditions in Germany, with the respective PMI falling to its lowest level since June 2009. Austria also experienced a notable deterioration, whilst Spain, Italy, and Ireland also recorded sub-50.0 PMI readings during September. Meanwhile, France barely grew whilst there was only modest growth in the Netherlands. Greece remained the best-performing of all countries, despite the rate of expansion slipping to a three-month low.