Purchasing Managers' Index: Eurozone manufacturers shrug off Greek debt crisis in July

Jessica Morris
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Greece's manufacturing sector suffered as the debt crisis took hold (Source: Getty)

The Eurozone's manufacturing sector continued to grow modestly in July, suggesting any effect from the Greek debt crisis remained limited.

Markit's Eurozone manufacturing PMI hit 52.4 in July, ahead of the earlier flash estimate of 52.2, and also above the crucial 50 mark which indicates growth.

This also meant it managed to hold close to June's reading of 52.5, which had been the highest for over a year.

"The Eurozone manufacturing economy showed encouraging resilience in the face of the Greek debt crisis in July," Chris Williamson, chief economist at Markit, said. Nevertheless he added growth continued to remain "modest".

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In Greece itself, though, the story was rather different: new production orders, new export orders, employment and purchasing activity all dropped at the fastest rates since the Greek survey began in May 1999.

Meanwhile, Germany's survey ticked lower to 51.8, down from 51.9 in June, and in France the figure fell below the 50 mark which separates expansion from contraction. However, the survey said the rate of contraction was "only mild".

The Netherlands and Italy both enjoyed strong expansions in both production and new business during July, while Spain also remained a strong performer despite its rate of expansion cooling further.

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