Euro area factory activity continued to deteriorate in August

By Tuba Ongun

ANKARA (AA) – Euro area manufacturing sector continued to deteriorate in August as new orders plummeted and backlogs of work rapidly depleted.

The Hamburg Commercial Bank (HCOB) eurozone manufacturing purchasing managers' index (PMI) rose to 43.5 in August, from July’s 38-month low of 42.7.

The PMI stayed below the threshold level for the fourteenth consecutive month, according to data released on Friday.

Factory employment slipped for the third month in a row while purchasing activity was slashed once again as companies maintained their efforts to run down stocks.

Among countries in the single currency zone, Greece and Ireland recorded an improvement since July, while Germany, France, Italy, and Spain, the four largest economies, all remained in contraction territory.

Manufacturers’ input costs went down for a sixth successive month, with the rate of decline remaining steep overall.​​​​​​​