eurozone manufacturing pmi july showed euro area factory activity rising to a three-month high, even as demand across the region stayed weak.
The survey pointed to stronger output in July, with Germany providing much of the support. At the same time, the data showed only slight signs of improvement in new orders. Therefore, the broader demand picture remained fragile.
The manufacturing output index rose to 52.9 in July. That marked a 52-month high. Moreover, the faster rise in output came from firms completing backlogged work and from a small increase in sales.
Eurozone Manufacturing PMI July Signals Split Trends
Despite the stronger output reading, factories still faced supply chain strain. However, those pressures were the weakest in five months. Inflation pressures also eased during July, according to the survey.
The report said Germany, the Netherlands, Austria and Greece posted strong output growth. In contrast, France and Spain recorded falling output. Italy, meanwhile, showed only a modest increase.
The survey said these gaps reflect continued strain in large parts of the region. Weak demand, high prices and supply delays remained key problems. Although supply bottlenecks and energy-linked price pressures eased a little, they still stayed high during the survey period.
Demand and Jobs Remain Under Pressure
The report said weak new work remained a major concern. As a result, manufacturers relied on orders placed in earlier months to support the latest rise in production. That left the current output gain on a less stable base.
Factories also continued to cut jobs because of concern about a possible shortage of work in the months ahead. Meanwhile, the survey warned that the recent growth burst could fade later in the year. It added that headline output figures may overstate the health of the manufacturing sector.
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Source: InvestingLive
