Conditions in the Eurozone Manufacturing sector continues to weaken as the manufacturing PMI was recorded as the lowest since July 2009, as the signs of weakness are clearly apparent. in the core nations and the periphery nations remain in recession.

The Markit Eurozone Manufacturing  PMI for the month of October slipped to 47.1 even below the flash estimate of 47.3, and down from 48.5 registered in September.

PMIs signal contraction in all nations except Ireland. Jobs growth weakened, with only Germany, France and Austria seeing employment rise.

Germany the main driver of the Eurozone recovery saw a PMI contraction for the first time since September 2009.

The rate of decline was marked fastest in 27 years in  Austria and Netherlands and France signaled deterioration for the third month in a row. Italy's performance also deteriorated sharply with Greece.

Eurozone manufacturing output, new orders and new export orders all contracted at the fastest rates in almost two-and-a-half years during October. Moreover, in all three cases, the pace of reduction was sharper than the earlier flash estimate.

Countries Ranked by Manufacturing PMI for the month of October 2011

Ireland  50.1 5 month high

Germany  49.1  27 month low

France  48.5     2 month high

Austria    48.0 27 month low

Netherlands 48.0 27 month low

Spain 43.9 2 month high

Italy 43.3 28 month low

Greece 40.5 31 month low

Rob Dobson, Senior Economist at Markit gave his comments for the data : "The latest manufacturing PMI further emphasises the marked reversal of fortunes for a sector that was the leading light of the economic recovery. Output, new orders and new export orders all suffered their fastest declines since mid-2009, against a backdrop of weak domestic market conditions, the ongoing debt crisis and a darkening outlook for the global economy.

Signs of weakness are also becoming more prominent not just in the periphery but also the core, with the German PMI joining all of the other nations except Ireland in contraction territory.

The only possible bright spot was an easing in inflationary pressures. Input costs fell for the first time in two years, allowing manufacturers to hold fire on further selling price increases at a time of strong competition and falling new order inflows.”