Eurozone manufacturing downturn continues

<p>Eurozone manufacturing output has continued to fall, according to new PMI data.</p>

The manufacturing downturn in the eurozone has not abated, according to fresh purchasing managers' index (PMI) data released today (October 1st).

September's Markit PMI reading for the single currency region was 46.1, which is an improvement on August's 45.1.

The PMI system means any reading lower than 50 indicates contraction, so while the sector is still shrinking, the rate of contraction is slower than it once was.

Only the Netherlands and the Republic of Ireland recorded growth in this sector, while Germany, Italy and Spain all recorded six-month highs.

However, Markit recorded a sharp fall for French factory output, with the nation's PMI slumping to 42.7.

Chief economist for Markit Chris Williamson commented: "The survey is consistent with manufacturing output falling at a quarterly rate of perhaps as much as one per cent, which means the sector will act as a severe drag on economic growth."

At 09:55 BST, the euro was 0.1 per cent higher versus the dollar, climbing to €1 for every $1.288.

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