The ongoing trade war between the US and China continues to have a knock-on effect on global output, as new figures found that Eurozone manufacturing growth has dropped to a new low at the end of the third quarter.
The final manufacturing Purchasing Managers’ Index from data and information services provider HIS Markit shows a two-year low of 53.2 compared to August’s 54.6. While this is still above the 50 level that would separate growth from contraction, it is cause for concern among European producers.
According to Chris Williamson, chief business economist at HIS Markit, "Eurozone manufacturing shifted down yet another gear at the end of the third quarter. The sector has seen booming growth at the start of the year rapidly fade to the worst performance for two years in September as production and jobs growth have slowed in response to a stalling of export trade.”
"The survey paints the worst trade picture for over five years, with export growth having slumped sharply from a series record high in late 2017 to near-stagnation in September."
The US-China trade wars, which have seen a series of escalating tariffs imposed and neither Washington or Beijing showing any readiness to compromise as yet, have left many European manufacturers concerned about possible barriers to global trade.