Key countries signal recession, data show

BEIJING / LONDON

November manufacturing data from the world’s three key economies became another proof that a global economic slowdown could be in the making – raising worries over the possibility of another recession.

The data comes as Turkey’s exports logged a monthly decline in November – down to $10.76 billion from $11.88 billion in October.

China’s manufacturing activity contracted in November for the first time in 33 months, Agence France-Presse reported yesterday, as deepening global economic woes hit exporters. The official purchasing managers index (PMI) fell to 49 last month, down 1.4 points from October, marking the first contraction since February 2009.

HSBC said its manufacturing activity index also fell to a 32-month low of 47.7 in November from 51 in October, signalling “solid deterioration.”

A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.
Meanwhile, the eurozone’s manufacturing sector contracted at its fastest pace in two years, according to November data released yesterday.

The Markit Eurozone Manufacturing Purchasing Managers’ Index (PMI) fell to 46.4 in November, its lowest level since July 2009, down from October’s 47.1, Reuters reported.

“The final PMI data confirm the downbeat picture from the earlier flash results. It was also the first month since mid-2009 that all countries saw output fall, highlighting the broadening-out of the downturn from the periphery to the core,” said Chris Williamson, chief economist at data compiler Markit.

Earlier data from Germany showed its manufacturing sector contracted at its fastest pace in over two years while in France the index sank to its lowest reading since June 2009. Italian factory activity contracted for the fourth consecutive month while Spain’s shrank for the seventh month.

Shrinking in UK
In November, Britain’s manufacturing sector shrank for a second successive month and at its fastest pace since June 2009 as output and orders fell on weak global demand.

The Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) fell to 47.6 in November, its lowest level since June 2009, from an upwardly revised 47.8 in October.

The only bright manufacturing data of yesterday came from Russia. The HSBC Purchasing Managers’ Index rose in November to a seasonally adjusted 52.6 points from 50.4 a month earlier, HSBC said yesterday in a statement, citing data compiled by Markit Economics.

The data “suggest that Russia’s economy is weathering the deterioration in global economic conditions,” Bloomberg News reported.