Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 47.4 points in June, up from May’s 39.4 percent and increasing compared to the earlier flash estimate at 46.9 points. In June, the severe downturn in the euro zone manufacturing economy continued to ease, in line with the continued easing of global coronavirus restrictions on economic activity.
In June, both the intermediate and investment goods sectors continued to contract, but there was a return to growth among consumer goods producers. According to Markit, manufacturers continued to reduce their purchasing activity in June for a 19th successive month, preferring instead to focus on utilising existing stocks in production wherever possible. Inventories of both inputs and stocks of finished goods subsequently declined during June.
“The final PMI numbers for June add further to signs that the euro zone factories are seeing a strong initial recovery as the economy lifts from Covid-19 lockdowns. Expectations for the year ahead have rebounded sharply as hopes grow that the economy will continue to find its feet again in the coming months,” said Chris Williamson, chief business economist at IHS Markit.