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Eurozone manufacturing PMI falls to 18-month low in June

Staff Writer | July 4, 2018
The euro area manufacturing upturn slowed further at the end of the second quarter.
Eurozone manufacturing
Europe   The euro area manufacturing upturn slowed
The final IHS Markit Eurozone Manufacturing PMI posted an 18-month low of 54.9 in June, down from 55.5 in May and the earlier flash estimate of 55.0.

The PMI has signalled a weakening in the pace of expansion in each month since the turn of the year, as manufacturers have experienced a synchronised easing in growth of both production and new order volumes.

PMI readings moved lower in five of the nations covered by the survey, including the two best performers (Netherlands and Austria).

Weaker expansions were also seen in Germany, France and Greece, with France dropping to the bottom of the growth league table.

Third-placed Ireland saw growth pick up to a five-month high, while a mild acceleration in Italy was insufficient to prevent it registering the second-worst overall performance.

The pace of expansion was unchanged in Spain.

Output and new order growth have both eased sharply since the end of 2017.

In June, the rates of expansion in production and new business were the weakest since November 2016 and August 2016 respectively.

This in turn had an impact on business optimism, which slumped to its lowest level in over two-and-a-half years.

The easing was widespread by sector, with output and new order growth slowing across the consumer, intermediate and investment goods segments.

Producers of investment goods registered the strongest rates of increase in both measures.