The Eurozone manufacturing sector activity stalled its rebound and fell deeper into contraction in the month of July, the latest manufacturing activity survey from IHS/Markit research showed.
The Eurozone manufacturing purchasing managers index (PMI) came in at a 79-month low of 46.4 in July vs. 47.6 expected and 47.6 last while the services PMI dropped to 2-month lows of 53.3 vs. 53.3 expected and 53.6 last.
The IHS Markit Eurozone PMI Composite fell from 52.2 in June to 51.5 in July, hitting fresh 3-month lows.
Comments from Chris Williamson, Chief Business Economist at IHS Markit:
“The eurozone economy relapsed in July, with the PMI giving up the gains seen in May and June to signal one of the weakest expansions seen over the past six years. The pace of GDP growth looks set to weaken from the 0.2% rate indicated for the second quarter closer to 0.1% in the third quarter.”
“The manufacturing sector has become an increasing cause for concern. Geopolitical worries, Brexit, growing trade frictions and the deteriorating performance of the autos sector in particular has pushed manufacturing into a deeper downturn with the survey indicative of the goods-producing sector contracting at a quarterly rate of approximately 1%.”
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