Monday 1 July 2019 9:59 am

Eurozone manufacturing falls to three-month low as downturn drags on

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.

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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.

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“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