Eurozone PMI Manufacturing Finalized at 47.4

Eurozone PMI Manufacturing was finalized at 47.4 in June, up from 39.4 in May a report by IHS Markit said. The index was in contraction below 50 for 17 consecutive months. and had fallen to 33.4 in April.

The report stated:

“Eurozone manufacturing sector continues to contract sharply,”

“There was a noticeable easing in the recent downturn in the euro area manufacturing sector during May, as evidenced by a six-point rise in the PMI to a two month high,”

“The final PMI numbers for June add further to signs that the eurozone factories are seeing a strong initial recovery as the economy lifts from COVID-19 lockdowns. The rise in the June survey is indicative of output falling at an annual rate of just 2%. That compares with a near 30% rate of contraction seen at the height of the lockdowns in April. This remarkable turnaround implies very strong month-on-month gains in the official production numbers for the past two months. Expectations for the year ahead have also rebounded sharply as hopes grow that the economy will continue to find its feet again in the coming months.” Said Chris Williamson, Chief Business Economist at IHS Markit