Economic Buzz: Eurozone Manufacturing Sector Falls Into Contraction

1 Aug 2022 , 02:52 PM

The eurozone manufacturing sector fell deeper into contraction at the start of the third quarter, with July PMI data signaling the sharpest decline in production since the initial wave of strict COVID-19 lockdowns in May 2020. The downturn strengthened amid a reduction in new orders which, aside from those seen during the pandemic restrictions, was the sharpest since the eurozone sovereign debt crisis in 2012 as steep inflation squeezed demand. The S&P Global Eurozone Manufacturing PMI fell below the crucial 50.0 mark in July to 49.8, from 52.1 in June, signaling the first deterioration in overall manufacturing sector conditions for just over two years. With the exception of stocks of purchases, each of the PMIs sub-components had a negative directional influence on the measure. Powered by Commodity Insights