Eurozone growth slows to four-year low due to sluggish manufacturing sector

Eurozone business activity growth slumped to the lowest rate in four years, according to the latest statistics.

The slowdown hit the manufacturing sector hardest, where output only rose marginally, due to subdued car sales, weakened global demand, rising political and economic uncertainty and trade wars.

Service sector growth fared slightly better however growth still declined to the lowest in just over two years, according to figures from IHS Markit.

Employment growth was also down, slowing to a 22-month, as firms scaled back expansion plans.

IHS Markit chief business economist Chris Williamson said: “The cooling of Eurozone business growth to a four-year low adds to signs that the economy faces a disappointing end of the year.

“Manufacturing remains the main area of weakness, linked in part to having been hit hard once again by deteriorating exports.

“The slowdown is also being temporarily exacerbated by persistent disappointing car sales.

“However November also brought further signs that the manufacturing led slowdown is spilling over to services, as consumer and corporate demand was often reported to have weakened in the face of headwinds such as rising political uncertainty, tighter financial conditions and higher prices.

“As such, the survey data suggest that the weakness of GDP in the third quarter may not have been a blip, and that the underlying trend is one of slower economic growth.”