The Eurozone’s manufacturing downturn continued throughout June as the sector fell to a three-month low, data released today revealed.
The IHS Markit had the Eurozone manufacturing below the 50 no-change mark again as it contracted for a fifth-successive month with a PMI of 47.6, down from 47.7 in May.
Germany’s weakness was once again a major contributory factor as it remained the worst performer with a PMI of 45, although it was its highest in four months.
Spain also endured a disappointing month, suffering a 74-month low, the data revealed.
Despite generally weak operating conditions, Greece remained the strongest performing country across the single currency area.
France was also a bright spot, bucking the overall trend with a nine-month high of 51.9.
There was another notable deterioration in manufacturing order books, with June the ninth-consecutive month that there has been a decrease in new work registered.
As a result production volumes also suffered for a fifth month running.
“Eurozone manufacturing remained stuck firmly in a steep downturn in June, continuing to contract at one of the steepest rates seen for over six years,” said Chris Williamson, chief business economist at IHS Markit.
“Deteriorating inflows of new work meanwhile meant manufacturers increasingly focused on keeping costs down, notably by cutting staff numbers and warehouse stocks.”
He added: “The downturn is also showing no signs of any imminent end. The survey’s forward-looking indicators remained worryingly subdued in June, adding to concerns about the economy in the second half of the year