Eurozone PMI Manufacturing was finalized at 47.6 in June, revised down from 47.8, versus May’s 47.7. Among the member states, Germany reading was revised down to 45.0, but that was a 4-month high. Austria dropped to 55-month low at 47.5. Spain dropped to 74-month low at 47.9. Italy dropped to 3-month also at 48.4. Ireland dropped to 72-month low at 49.8. All these readings are contractionary.
Expansionary reading including Netherlands at 50.7, but that’s still at 73-month low. France was revised down from 52.0 to 51.9, a high month high. Greece dropped to 19-month low at 52.4.
Commenting on the final Manufacturing PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“Eurozone manufacturing remained stuck firmly in a steep downturn in June, continuing to contract at one of the steepest rates seen for over six years. The disappointing survey rounds off a second quarter in which the average PMI reading was the lowest since the opening months of 2013, consistent with the official measure of output falling at a quarterly rate of approximately 0.7% and acting as a major drag on GDP.
“Deteriorating inflows of new work meanwhile meant manufacturers increasingly focused on keeping costs down, notably by cutting staff numbers and warehouse stocks.
“The downturn is also increasingly feeding through to lower inflationary pressures, as producers and their suppliers compete on price to retain customers and generate sales. In stark contrast to the steep rise in producers’ costs and charges seen at the start of the year, raw material prices are now falling for the first time in three years and selling prices are barely rising.
“The downturn is also showing no signs of any imminent end. The survey’s forward-looking indicators remained worryingly subdued in June, adding to concerns about the economy in the second half of the year.”