Eurozone Manufacturing Sector Shrinks More Than Estimated

Eurozone manufacturing activity contracted for the fifth straight month in June, and the latest pace of decline was slightly more than initially estimated, final data from IHS Markit showed Monday.

The factory Purchasing Managers’ Index fell to a 3-month low of 47.6 in June from 47.7 in May. The score was slightly weaker than the earlier flash reading of 47.8.

“The disappointing survey rounds off a second quarter in which the average PMI reading was the lowest since the opening months of 2013, consistent with the official measure of output falling at a quarterly rate of approximately 0.7 percent and acting as a major drag on GDP,” Chris Williamson, chief business economist at IHS Markit said.

Operating conditions were generally weak across the single currency area, according to the latest country data. Germany remained the weakest-performing nation.

Germany’s final IHS Markit/BME manufacturing PMI decreased to 45.0 from 44.3 in May. The flash reading was 45.4. Although well below the neutral 50.0, the index rose to a four-month high.

France bucked the overall trend somewhat, registering its highest PMI for nine months in June. The manufacturing indicator rose to 51.9 from 50.6 in May. This reading was also below the flash 52.0.

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Source:: Eurozone Manufacturing Sector Shrinks More-Than-Estimated