Eurozone Manufacturing output falls in June
The IHS Markit Eurozone Manufacturing PMI® for June read 47.6, marginally lower than May, and reflecting ongoing falls in output and new orders, for the fifth successive month.
Greece (52.4), France (51.9) and the Netherlands (50.7) alone recorded growth and both Greece and Netherlands represented long term low readings. France bucked the general trend with a 9-month high reading. Ireland slipped marginally into contraction (49.8) recording a six-year low. Germany remained at the bottom of the ranking, with an improved reading but still well into contraction at 45.0. Italy recorded 48.4, Spain 47.9 (another six-year low) and Austria 47.5 (a 55-month low).
Overall, operating conditions for consumer goods manufacturers improved to the greatest degree since January. In contrast, intermediate and investment goods producers recorded marked contractions – for the intermediate category, the sharpest since Spring 2013.
Overall new work fell, with export orders falling at a marked pace. Production volumes were down modestly in June, but firms made notable inroads to backlogs, cutting them for the tenth successive month.
Key depressive factors remain underperformance in the automotive sector, ongoing global trade tensions and political uncertainties.
Germany, Italy and Spain all registered reductions in employment levels. The survey recorded the first fall in input prices for three months, with metals and oil product prices pulling them down, together with shorter supply side lead times.
The survey’s forward-looking indicator was, Markit says, “worryingly subdued adding to concerns about the economy in the second half of the year”.