Eurozone: Manufacturing PMI fell for the first time in two years

Manufacturing output fell in June for the first time since the initial wave of the coronavirus pandemic in two years, as higher prices and a worsening economic outlook kept consumers wary of shopping.

The S&P Global manufacturing PMI fell to 52.1 in June from 54.6 in May, the lowest level since August 2020 but marginally higher than initial estimates of 52.

The index, which measures output, fell below 50 points to a two-year low of 49.3 points. In May it stood at 51.3 units.

Eurozone manufacturing contracted in June, with output falling for the first time in two years amid a sharp drop in demand, S&P Global chief economist Chris Williamson said.

“Demand is now weakening as companies report that customers are becoming more cautious about spending because of rising prices and an uncertain economic outlook,” he added.

The new orders index fell to 45.2 from 48.7, the lowest level since May 2020.

S&P Global’s forward-looking indicators paint a bleak picture, with raw material inventories and unsold inventories rising due to lower-than-expected production and sales volumes, while the backlog of work is falling.

Source: Capital

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