Euro Zone Manufacturing Posts Strongest Quarter Since Early 2022 as June PMI Slips to 51.4
Updated
Updated · WTVB · Jul 1
Euro Zone Manufacturing Posts Strongest Quarter Since Early 2022 as June PMI Slips to 51.4
3 articles · Updated · WTVB · Jul 1
Summary
June capped the euro zone’s best manufacturing quarter since early 2022, even as the headline PMI eased to a four-month low of 51.4 from 51.6 and stayed above the 50 growth line for a fifth month.
Oil’s sharp drop and easing supply worries cooled factory costs, with input inflation slowing to its weakest pace since March and output price inflation falling to a three-month low.
Supply chains still showed strain from the Middle East conflict, but delivery times improved to a three-month high; manufacturers also ran down pre-purchased materials as precautionary stockpiling began to fade.
New orders returned to modest growth while export orders remained a slight drag; Spain and France contracted, factory employment kept shrinking, and confidence rose to a four-month high.
Most survey responses came before the June 17 U.S.-Iran ceasefire memorandum, leaving the full effect on energy costs and supply conditions still to be reflected in coming data.