8/1/2019, 10:01 AM (Source: TeleTrader)
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Euro area manufacturing weakens further in July

The manufacturing sector in the Eurozone contracted in July for a sixth consecutive month, IHS Markit said in a report on Thursday. The Final Eurozone Manufacturing Purchasing Managers Index (PMI) stood at 46.5 in the last month that was surveyed, down from 47.6 in June and lowest since December 2012.

Europe's largest economy, Germany, observed the biggest fall in manufacturing activity 84 months. Other major economies' manufacturing sector also slowed, while the Netherlands and Greece improved. A sharp decline in new orders was cited as the main reason for the downfall, "as ongoing trade tensions, difficulties in the automotive industry and political uncertainties continued to weigh on demand both in internal and external markets," the report said. Consumer goods manufacturers were the only ones that recorded growth.

"Rising geopolitical concerns, including trade wars and Brexit, and worries about slower economic growth both domestically and internationally were all widely reported as having subdued current demand and hit confidence in the outlook. The concern is that, while policymakers have become increasingly alarmed at the deteriorating conditions, there may be little that monetary policy can do to address these headwinds,' commented Chris Williamson, Chief Business Economist at IHS Markit.

Breaking the News / NI