Eurozone industrial production falls in June for the first time in 2 years, PMI shows

Eurozone industrial production fell last month for the first time since the initial wave of the coronavirus pandemic two years ago, as higher prices and bleak economic prospects kept consumers wary of shopping, a survey showed.

The S&P Global Purchasing Managers Index (PMI) dropped to 52.1 in June from 54.6 in May, its lowest since August 2020 but just above a preliminary reading of 52. ,0.

The sub-index measuring production fell below the 50 mark that separates growth from contraction to a two-year low of 49.3. In May it reached 51.3.

“Eurozone manufacturing went into decline in June, with production falling for the first time in two years amid a sharp drop in demand,” said Chris Williamson, chief business economist at S&P Global.

“Demand is now weakening as companies report that customers are increasingly cautious about spending due to rising prices and uncertain economic prospects.”

The new orders sub-index fell further below breakeven to 45.2 from 48.7, its lowest point since May 2020. Consumers have been shunning purchases due to rising prices and recession fears.

UK

The UK manufacturing PMI fell from 54.6 in May to 52.8 in June, hitting a two-year low.

The final reading was well below the preliminary June estimate and the forecast of analysts polled by The Wall Street Journal of 53.4 in both cases.

Despite the drop, the result above the 50 barrier shows that the British manufacturing sector continued to expand last month, albeit at a slower pace.

Germany

Germany’s manufacturing PMI dropped from 54.8 in May to 52 in June, hitting a 23-month low.

The definitive reading confirmed the preliminary June estimate and came in line with the forecast of analysts polled by The Wall Street Journal.

Despite the drop, the result above the 50 barrier shows that German manufacturing continued to expand last month, albeit at a slower pace.

*With information from the State Agency