Markit’s Eurozone Manufacturing Purchasing Managers Index (PMI) posted 63.4 points in June, up from May’s 63.1 points and the earlier flash estimate of 63.1 points.
Overall production growth in the euro zone’s manufacturing sector remained elevated during June, edging up slightly since May to a level close to the survey records registered earlier in the year. Output continued to increase at especially strong rates in both Germany and the Netherlands. Strong growth in production was again closely linked to positive demand developments, with new orders experiencing their third-fastest ever reported increase during June. Growth remains broad-based, with new export orders again increasing sharply over the month.
“The sheer speed of the recent upsurge in demand has led to a sellers’ market as capacity and transportation constraints limit the availability of inputs to factories, which have in turn driven industrial prices higher at a rate not previously witnessed by the survey. Manufacturers are clearly willing to pay more to ensure sufficient supplies of key inputs,” Chris Williamson, chief business economist at IHS Markit, commented.