Eurozone PMI manufacturing was finalized at 54.9, revised down from 55.0. That’s also an 18-month low. Markit noted that growth of output and new orders slowed further as upturn in new export business remains subdued. Also, supply chain pressure and rising oil prices took input cost inflation to four-month high.
Among the countries, the Netherlands stayed strong at 60.1 even hitting 6-month low. Ireland hit 5-month high at 56.6. Italy rebounded and hit 2-month high at 53.3. France deteriorated to 16-month low at 52.5.
Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“Eurozone manufacturing reported its weakest expansion for one-and-a-half years in June, with risks clearly tilted towards output growth waning further in coming months.
“Production growth has weakened markedly since the end of last year, and new order inflows have slowed even more. Manufacturers may therefore need to rein-in their production further to adjust to the recent downturn in order book growth unless demand revives.
“The biggest concern is the extent to which export order book growth has cooled since the start of the year, and could soon go into decline. The survey reveals mounting worries from companies relating to the impact of tariffs and trade wars, suggesting firms are bracing themselves for the potential for further export losses. Not surprisingly, business expectations for future production deteriorated in June to the lowest November 2015.
“At the same time there are signs that political uncertainty is also dampening business spirits, most evidently in Italy, which was consequently the second-worst performer of all countries surveyed in June ahead of France.”
