Eurozone PMI Manufacturing is finalized at 51.8 in July, up from April’s 47.4. It’s also the first growth reading in a year-and-a-half with demand continued to recovery with further easing of coronavirus restrictions. Growth was widespread too, with all market groups registering above 50 readings.
Looking at some member states, Spain hit 27-month at 53.5. Austria hit 19-month high 52.8. France hit 22-month high at 52.4. Italy hit 25-month high at 51.9. Germany also hit 19-month high at 51.0. But Greece and the Netherlands stayed in contraction at 48.6 and 47.9 respectively.
Chris Williamson, Chief Business Economist at IHS Markit said: “Eurozone factories reported a very positive start to the third quarter, with production growing at the fastest rate for over two years, fuelled by an encouraging surge in demand. Growth of new orders in fact outpaced production, hinting strongly that August should see further output gains…
“Increased unemployment, job insecurity, second waves of virus infections and ongoing social distancing measures will inevitably restrain the recovery. The next few months numbers will therefore be all important in assessing whether the recent uplift in demand can be sustained, helping firms recover lost production and alleviating some of the need for further cost cutting going forward.”