Eurozone PMI shows mixed manufacturing fortunes

Posted on: July 3rd, 2020 by PWM

The final IHS Markit Eurozone Manufacturing PMI® for June came in slightly higher than the earlier flash report,  reading 47.4 (Flash 46.9 May 39.4). However, it means index has yielded a contraction reading for 17 successive months. 

Across the Eurozone intermediate and investment goods sectors continued to contract, but consumer goods production returned to growth. 
While all countries reported improved PMIs, fortunes varied across the Eurozone. France and Ireland were the only countries to report manufacturing growth. 

France         52.3 (flash: 52.1)
Ireland          51.0
Greece         49.4
Spain             49.0
Italy               47.5
Austria         46.5
Netherlands 45.2
Germany       45.2 (flash 44.6) 

Employment fell in June for the fourteenth successive month and at a significant pace. Purchasing activity remained depressed, with firms reported to be utilising existing stocks wherever possible. Input and finished goods inventories declined during the month and average lead-times, despite reduced demand, continued to extend.

Input costs reduced for the thirteenth consecutive month with manufacturers passing cost savings onto clients, so average output prices fell ‘solidly’. 

Expectations for the year ahead rebounded sharply, as hopes grow that the Eurozone economy will “find its feet” in coming months. 

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