Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 52 points in July this year, down from June’s 52.8 points and rising compared to the earlier flash estimate of 51.9 points.
The main factor underlying the drop in the headline index was a softer positive contribution from new order growth. Incoming new business rose at a weaker pace than in June and to a lesser extent than the average for the year-to-date.
“Although signalling an easing in the pace of expansion in July, the PMI points to steady manufacturing growth,” stated Chris Williamson, chief economist at Markit. “The surveys suggest that euro area factory output is expanding at a near two percent annual pace, which has encouraged firms to take on extra staff at the fastest rate for five years in recent months,” he added.