Eurozone PMI manufacturing was revised up to 56.2 in April, from 56.0. Markit noted
slower rates of expansion in five of the eight nations covered, and slower increases in new work and employment offset slightly stronger gain in output
Among the countries, Germany PMI manufacturing hit a 9-month low, Italy hit 15-month low and Spain hit 7- month low. France and Ireland performed pretty well by climbing to 2 month high.
Comments from Chris Williamson, Chief Business Economist at IHS Markit:
“The manufacturing sector saw growth weaken further at the start of the second quarter, but let’s not lose sight of the fact that the overall pace of expansion remains encouragingly solid.
“Although growth has slowed markedly compared to the start of the year, December had seen the best performance in over 20 years of survey data collection, with factory activity clearly surging at an unsustainable rate. Since then, supply constraints – including raw material scarcities, supplier delivery delays and skill shortages – have constrained production. Strikes, bad weather and unusually high levels of illness have also plagued businesses.
“Some of these adverse factors are therefore likely to be reversed in coming months, as capacity is increased, supply improves and factors such as strikes and weather cause fewer problems.
“However, anecdotal evidence from the surveys also highlights how demand has been curbed by other issues such as the stronger euro and rising prices. Uncertainty has also intensified due to worries regarding trade wars and Brexit, underscoring downside risks to the outlook.
“While the current pace of growth remains solid, the trend in the surveys in coming months will provide important clues as to the degree to which underlying demand may be waning and the extent to which policymakers should be concerned about the health of the economy.”
