The final data provided by HCOB showed that activity in the eurozone manufacturing sector deteriorated markedly in June after reaching a 14-month high in May. New orders, purchasing activity and employment also decreased at faster rates.
Manufacturing PMI fell to 45.8 points from 47.3 points in May. The index remains below 50 points, which indicates a reduction in activity in the sector, since July 2022. Economists had expected the index to drop to 45.6 points. Weaker trends were seen across the majority of manufacturing sectors at the national level during June, with Greece retaining its position at the top of the manufacturing PMI rankings.
HCOB said that the manufacturing production fell again in June, with the pace of decline being the sharpest since this year. June’s contraction came amid a sharper deterioration in demand conditions, as evidenced by the respective index for new orders falling further below the 50.0 no-change mark. New export sales also declined in June, while the drop was the steepest since February. Eurozone manufacturers lowered purchasing quantities in June amid shrinking production requirements. Stocks of purchases continued to be depleted, and June's decline was the sharpest in the year-to-date. Outstanding business fell in June, extending the current sequence of depletion to just over two years. Employment in the manufacturing sector also declined, with the pace of decline being the strongest in three months. As for the inflationary situation, input costs increased for the first time in 16 months. The price of goods leaving the factory gate continued to fall, but at the weakest pace in 14 months. Meanwhile, business confidence was unchanged from May 27-month high.