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S&P
Global's final manufacturing Purchasing Managers' Index (PMI)
bounced to 47.8 in December from November's 47.1, matching a
preliminary reading but still below the 50 mark separating
growth from contraction.
An index measuring output, which feeds into a composite PMI due
on Wednesday and seen as a good gauge of economic health, also
came in at 47.8, up from November's 46.0, marking its seventh
month of sub-50 readings but its highest since June.
The final data was compiled earlier than usual last month due to
the holiday season.
"A second successive monthly cooling in the rate of loss of
factory output brings some cheer for the beleaguered
manufacturing sector as we start the new year," said Chris
Williamson, chief business economist at S&P Global Market
Intelligence.
"Prospects have brightened amid signs of healing supply chains
and a marked softening of inflationary pressures, as well as a
calming of concerns over the region's energy crisis, thanks in
part to government assistance."
While the input and output prices sub-indexes remained high,
they both dropped substantially, likely welcome news for
policymakers at the European Central Bank who have been trying
to calm rampant inflation by tightening monetary policy.
With inflationary pressures easing, supply chains healing and an
energy crisis likely averted purchasing managers turned
optimistic and the future output index jumped to 53.8 from 48.8.
"The number of optimists regarding the year ahead has also now
exceeded pessimists for the first time since August, hinting at
a steady improvement in business confidence," Williamson said.
(Reporting by Jonathan Cable; Editing by Hugh Lawson)
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