Eurozone PMI Manufacturing was finalized at 43.5, marking a slight uptick from July’s 38-month low of 42.7. Country-level readings reveal that Germany, the largest economy in the Eurozone, remains a cause for concern. Although it reported a two-month high, its PMI of 39.1 underscores its struggles. Spain (46.5), France (46.0), the Netherlands (45.9), Italy (45.4), and Austria (40.6) remained in contraction. Greece and Ireland were above 50-mark at 52.9 and 50.8 respectively.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the situation, stating, “These numbers aren’t as terrible as they might look at first glance.”
Despite the obvious weakness signaled by a PMI below 50, de la Rubia pointed out that all twelve subindices either improved or remained stable. “This indicates that the downward trend from the past few months is starting to lose steam across the board,” he added.
However, the cloud over Germany continues to darken. “Germany remains a negative outlier among the big euro countries,” de la Rubia noted. This latest data will likely rekindle debates about Germany being the “sick man of Europe”, even though it remains one of the most diversified economies in the region.
, France (46.0), the Netherlands (45.9), Italy (45.4), and Austria (40.6) remained in contraction. Greece and Ireland were above 50-mark at 52.9 and 50.8 respectively.){kind=link}