Germany’s beleaguered industrial sector rounded off a ‘lost year’ with a further decline in December – helping to drag eurozone manufacturing into reverse.
French factories also suffered a grim end to 2024 with the worst month since the height of the pandemic, as political chaos rages.
The declines for Europe’s two biggest economies, together with number-three player Italy, resulted in the sector shrinking across the eurozone.
Closely-watched purchasing managers’ index (PMI) figures gave a reading of 45.1 on a scale where 50 separates growth from contraction.
Germany posted 42.5 as it saw ‘sharp and accelerated declines in both output and new orders’ and further cutbacks to employment.
Its once-mighty industrial base has been in turmoil after losing access to cheap energy from Russia as a result of the Ukraine war, and a slump in demand from China.
Strike: Germany’s industrial base has been in turmoil after losing access to cheap energy from Russia prompting industrial unrest, such as protests from Volkswagen workers (pictured)
Its giant car industry has been battling cut-price Chinese imports.
That has prompted cost-cutting and industrial unrest, such as protests from Volkswagen workers.
And it is in political limbo ahead of elections next month after its coalition government collapsed.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, which compiled the latest figures, said: ‘The situation is still pretty grim. The industry won’t be coming out of recession any time soon.
‘The shrinking order backlog suggests the new year won’t start much better. It’s been a lost year.’
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