Markit’s Eurozone Manufacturing Purchasing Managers Index (PMI) posted 62.8 points in July, down from June’s 63.4 points and up slightly from the earlier flash estimate of 62.6 points.
Intermediate and investment goods producers registered sharp expansions in operating conditions, while the consumer goods category saw a contraction in the given month. In July, purchasing activity in the euro zone was expanded as part of efforts to meet growing production requirements. According to Markit, in July new export orders increased sharply, though the increase was the weakest in five months.
Euro zone manufacturers retained their optimistic outlook for the next 12 months as the global economic recovery continues and business adjusts to fewer pandemic-related restrictions. Overall, output expectations remained positive.
“Price pressures show no sign of abating, with July seeing another record increase in both input costs and prices charged for goods as demand exceeds supply, and concerns over future supply availability flare up again,” Chris Williamson, chief business economist at IHS Markit, commented.