Manufacturing Still Shrinking in Europe

Factory activity in the eurozone contracted for the 16th consecutive month in November, but it shrank at a slower pace than the month before, according to London-based Markit Economics.

Markit's eurozone manufacturing index, which is based on a survey of purchasing managers, rose to 46.2 last month from 45.4 in October. Any reading below 50 indicates contraction.

Ireland (52.4) was the only member of the 17-country eurozone whose manufacturing activity expanded in November. Rates of decline slowed for most of the region's major economies, including France (44.5), Germany (46.8) and Spain (45.3, the closest to expansion in 15 months). Italy's index worsened to 45.1.

Eurozone factory output, new orders and employment all shrank more slowly last month, according to Markit. It says the region's excess capacity is reflected in job losses and smaller order backlogs.

Separately, the HSBC Manufacturers Purchasing Managers Index for Russia slipped to 52.2 in November from 52.9 in October but remains in growth territory. HSBC describes the country's production as "robust" and says new export orders swung from contraction to expansion last month.