The final data provided by HCOB showed that activity in the eurozone manufacturing sector continued to contract in August, as new order inflows fell at the sharpest rate in 2024 so far. Meanwhile, prices charged for eurozone goods increased for the first time since April 2023 amid a third consecutive monthly rise in operating costs.
Manufacturing PMI was 45.8 points, unchanged from July and June. 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. As for the eurozone countries, Germany and France provided the strongest drags on aggregate factory performance. In both instances, manufacturing conditions worsened. The only countries that registered growth were Greece, Spain and Ireland.
HCOB said that the new orders, both domestic and international, are slowing down even more, dashing any short-term hopes for a rebound. New export sales recorded the sharpest drop in 8 months, while outstanding business volumes fell at the fastest rate since February. The decline in output slowed slightly and was markedly softer than that for new orders. The number of people employed fell again in August, recording a 15-month decline in a row. The data also showed that expectations for output in the coming year fell to the lowest level since March and were below the long-term average. As for the inflationary situation, the rate of input price inflation slowed fractionally but held close to July's 18-month high, while selling prices rose for the first time since April 2023, albeit slightly.