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Daily News

European Manufacturing Shrinks Second Month
Nov 5, 2002
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European manufacturing shrank for a second month in October as optimism waned about prospects for economic growth, a survey of 3,500 companies showed. The Reuters Purchasing Managers' Index for the dozen countries sharing the euro rose to 49.1, from 48.9 in September. A reading below 50 indicates a contraction in the industry. German, French, and Italian business confidence fell this month. Europe's telecommunications equipment makers have suffered as phone operators cut spending. Manufacturing in the U.S., which buys about a fifth of Europe's exports, is also shrinking. "I don't see any positive trends over the next 6 months," said Andrea Guerra, CEO of Merloni Elettrodomestici SpA, an Italian appliance maker. (Bloomberg News)

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