Eurozone Manufacturing Nears Stabilization Amid Slow Growth
Eurozone manufacturing drew closer to stabilization in July, contracting at the slowest rate in three years, as reflected by the HCOB Manufacturing PMI rising to 49.8. Despite new order dips, factory activity shows signs of a positive trend amid a new EU-U.S. trade framework reduction of uncertainty.
- Country:
- United Kingdom
Eurozone manufacturing activity nudged closer to stabilization in July, with the slowest pace of contraction in three years, highlighting cautious recovery signals according to the HCOB Eurozone Manufacturing PMI. The index rose to 49.8 from June's 49.5, hitting its highest point since July 2021.
This figure is just shy of the 50.0 growth-contraction threshold. While factory output persisted for a fifth month, the output index fell slightly to 50.6 from 50.8, marking a four-month low. Nevertheless, a recent EU-U.S. trade agreement aiming to cut uncertainties might fuel an upward trajectory in the coming months, Hamburg Commercial Bank's chief economist Cyrus de la Rubia noted.
Germany's PMI reached a 35-month peak of 49.1. Meanwhile, Ireland led with a PMI of 53.2, despite being a two-month low, while the Netherlands and Spain showed significant gains. Stable input costs and output prices, along with the ECB's steady interest rates, further shaped the eurozone's cautiously optimistic outlook.
(With inputs from agencies.)
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