Eurozone PMI Manufacturing was finalized at 47.4 in June, up from May’s 39.4. The headline index remained in contraction below 50 for 17 successive months. Among the member states, France PMI Manufacturing hit 21-month high of 52.3. Ireland was the only other one above 50 at 51.0. Greece (49.4), Spain (49.0), Italy (47.5), Austria (46.5), the Netherlands (45.2) and Germany (45.2) all stayed below 50.
Chris Williamson, Chief Business Economist at IHS Markit said: “The final PMI numbers for June add further to signs that the eurozone factories are seeing a strong initial recovery as the economy lifts from COVID-19 lockdowns. The rise in the June survey is indicative of output falling at an annual rate of just 2%. That compares with a near 30% rate of contraction seen at the height of the lockdowns in April. This remarkable turnaround implies very strong month-on-month gains in the official production numbers for the past two months. Expectations for the year ahead have also rebounded sharply as hopes grow that the economy will continue to find its feet again in the coming months.
“However, even with these gains, production and sentiment remain below pre-pandemic peaks, and persistent weak demand combined with ongoing social distancing measures are likely to act as a drag on the recovery. The focus therefore now turns to whether gains seen in the past two months can be built on, or if momentum fades again after this initial rebound.”
