(Bloomberg) — Europe’s manufacturing downturn deepened in December despite an easing of tensions over Brexit and international trade, damping hopes that the slump has bottomed out.
In the euro zone, IHS Markit’s gauge of factory activity weakened and posted an 11th consecutive month below 50, signaling contraction. U.K. manufacturing output matched its sharpest deterioration in more than seven years and orders for new work from domestic and overseas clients plunged.
The reports will come as a disappointment after optimism that the economy might get a lift from an easing of tensions that have heightened uncertainty and damped investment. The euro and pound both weakened against the dollar.
The British survey included the days immediately following Boris Johnson’s decisive election win on Dec. 12,