Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 54.9 points in June this year, down from May’s 55.5 points and declining compared to the earlier flash estimate of 55.0 points. The euro zone manufacturing PMI fell to a 18-month low.
Growth in the euro zone manufacturing sector lost momentum in June. Rates of expansion posted the weakest levels for production and new business, since November 2016 and August 2016 respectively.
“Euro zone manufacturing reported its weakest expansion for one-and-a-half years in June, with risks clearly tilted towards output growth waning further in coming months,” stated Chris Williamson, chief economist at Markit. “The biggest concern is the extent to which export order book growth has cooled since the start of the year, and could soon go into decline. The survey reveals mounting worries from companies relating to the impact of tariffs and trade wars, suggesting firms are bracing themselves for the potential for further export losses. Not surprisingly, business expectations for future production deteriorated in June to the lowest November 2015,” he added.