Eurozone manufacturing remains weak.1, local time, the euro zone and its major economies published June manufacturing purchasing managers’ index (PMI) terminal value, the euro zone’s manufacturing PMI to 47.6 in June, less than the former value of 47.7 and expectations of 47.8, this is the deterioration of the eurozone manufacturing for the fifth consecutive month, the euro zone economy “locomotive” German manufacturing PMI is still below the line from June.
The German manufacturing PMI came in at 45.0 in June, slightly above the previous reading of 44.3 and the highest in nearly four months, but still below the line between expansion and contraction.Weak external demand and slower growth in the auto sector continued to drag orders, leading to lower output and employment, IHS Markit said.
“One reason for the weakness in German manufacturing is the cooling of the global industrial cycle,” Timo Wollmershauser, director of forecasting at the Ifo institute for economic research, told China business news.
The French manufacturing PMI for June came in at 51.9, up from 50.6 and the highest in nine months, but slightly below expectations of 52.0.
The performance of other major eurozone economies was also bleak.Italy’s manufacturing sector remained depressed in June, with the PMI reading at 48.4, down 1.3 points from the previous reading, and new orders falling for 11 consecutive months.Spain’s manufacturing sector hit its lowest level since May 2013 in June, with the PMI reading at 47.9, falling below the line of expansion and contraction for the second time in three months, down at least two points from the forecast of 50.4 and 50.1.The overall business environment in the Netherlands was gloomy, with manufacturing PMI50.7 in June, the worst performance in six years.
Joe Hayes, an economist at IHS Markit, said eurozone gross domestic product grew just 0.2 per cent in the three months to June as slow trade flows and a weaker global economic backdrop continued to hit European manufacturers.
In addition, the just-released UK manufacturing PMI for June came in at 48, down sharply from 49.4 and well below the forecast of 49.5. This is the third consecutive month of decline since march this year.Analysts believe the choice of a new British prime minister will be announced in late July, further hampering efforts by policymakers to stimulate demand or calm markets.In the first quarter of this year, a large number of British manufacturing companies boosted industrial growth by stocking up on goods and parts to avoid the risk of a no-deal brexit at the end of march.
Post time: Jul-05-2019