Eurozone manufacturing PMI is finalized at 55.1 in July, unrevised. That was a touch higher than June’s final reading of 54.9. Market noted in the release that growth of both output and new orders remain
subdued compared to earlier in the year. Also, new export order growth at near-two year low amid concerns about tariffs and trade wars.
Among the countries, the Netherlands scored 58.0, but hit a 14 month low. Germany came second at 56.9 (revised down from 57.3). Italy hit a 21-month low at 51.5.
Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“A marginal uptick in the PMI provides little cause for cheer given it is the second weakest number for more than one-and-a-half years. The past two months have seen the most subdued spell of factory output growth since late-2016. Worse may be to come. Even this reduced rate of output growth continued to outpace order book growth, resulting in the smallest rise in order book backlogs for two years. The clear implication is that manufacturers may have to adjust production down in coming months unless demand revives.
“Clues to the current soft patch lie in the export growth trend, which has deteriorated dramatically since the start of the year across all member states to reach a near-two year low, with France and Austria seeing exports fall into decline in July.
“The survey responses indicate that the slowdown likely reflects worries about trade wars, tariffs and rising prices, as well as general uncertainty about the economic outlook. Optimism about the future remained at one of the lowest levels seen over the past two years.”
