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Weak Manufacturing Data Across The Eurozone

James Boston
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Weak Manufacturing Data Across The Eurozone

A clear update on the overall state of the Eurozone’s manufacturing sector is emerging this morning with the publication of the latest Purchasing Managers Indices (PMI) by Markit Economics. The headline Eurozone Manufacturing PMI has just been released as 49.4, this is significantly down on the recently revised May figure of 51.9, it has become contractionary and disappointed markets that were expecting a further 51.9 reading.

Today’s data release is also useful in that the individual breakdown of PMI numbers from individual Eurozone countries gives a picture of the regional disparities in strength of the blocs manufacturing sector.

The German PMI, which is the only other figure to undergo a revision to the previous month’s data, has come in at 52.0, this represents a moderate pullback from the refreshed May number of 52.4, consensus estimates were for a number in the region of this 52.4.

France’s manufacturing sector is still a cause for concern within the Eurozone, the data is remaining contractionary, i.e. below the key level of 50. Currently this is showing 48.2 for the month of June, this is compared to 49.6 for the previous month, it does however easily beat the pessimistic consensus estimate of 47.8.

Manufacturing in Spain is showing some positive signs with this month’s reading of 54.6, this is well ahead of the 52.9 seen in May, markets had anticipated no change to this May reading this month. Spanish manufacturing will however likely benefit from a large fiscal stimulus package announced by the Government towards the end of June.

The Italian PMI however is not faring so well, currently this is reading at 52.6 which represents a fall, albeit moderate, from the 53.2 level recorded in May, there was no expectation for a material change from the May figure this month.

The Irish figure did record a minor pick up on the month, this has been announced at 55.3 compared to 55.0 in May. Greece however recorded a fall to 49.4 from 51.0 in May.

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