Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 56.6 points in July this year, down from June’s 57.4 points and decreasing from the earlier flash estimate of 56.8 points.
The start of the third quarter saw a slight moderation in the recent strong rate of expansion of the euro zone manufacturing sector.
Manufacturing production continued to rise at a marked pace in July. Companies benefitted from solid gains in new business from both domestic and foreign clients. Although rates of expansion in output (six-month low), new orders (five-month low) and new export business (four-month low) all eased during the latest survey month, they nonetheless remained among the best registered since the first half of 2011.
The outlook for the euro zone manufacturing sector remained positive in July. Business optimism regarding production volumes in one year’s time dipped only slightly from June’s series-record high.
“Euro zone factories were buzzing with activity again in July. The PMI came in slightly below the earlier flash estimate, slipping to a four-month low, but this is still an encouragingly buoyant reading. The survey indicates that manufacturing output was growing at an annual rate of approximately four percent at the start of the third quarter, sustaining the best growth spell that the region has seen for six years,” stated Chris Williamson, chief economist at IHS Markit.