Eurozone PMI Manufacturing was finalized at 52.1 in June, down from April’s 54.6. That’s also the lowest level in 22 months. Readings of the member states were also weak, with the Netherlands at 19-month low of 55.9, Ireland at 16-month low at 53.1, Spain at 17-month low at 52.6, Germany at 23-month low at 52.0, France at 18-month low at 51.4, Austria at 22-month low at 51.2, Greece at 16-month low at 51.1, Italy at 24-month low at 50.9.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “Eurozone manufacturing has moved into decline in June, with production dropping for the first time for two years amid a steepening downturn in demand…. The downturn looks set to gain momentum in coming months…. One upside to the recent weakening of demand is an alleviation of some supply chain constraints, which has in turn helped cool inflationary pressures for industrial goods. With the survey data indicating an increasing likelihood of the manufacturing sector slipping into a recession, these price pressures should ease further in the third quarter.”
