Eurozone Manufacturing PMI hits 51-month high

Eurozone manufacturing recorded its strongest improvement in more than four years in August. The eurozone Manufacturing PMI rose from 51.9 to 52.7, its highest reading since May 2022.

Intermediate-goods manufacturers – including producers of chemicals, metals, electrical equipment and electronic components – made the largest contribution to eurozone output growth.

The recovery was not broad-based, however. The headline recovery concealed a widening divide across Europe. Germany and the Netherlands reported solid growth and stronger export demand, while Italy and Spain returned to contraction and Poland’s prolonged downturn deepened.

Germany recorded the strongest improvement among the markets examined, jumping from 52.2 to 54.3.

The UK stayed above 50 for a tenth month, but its PMI slipped to a five-month low of 51.7.

Romania strengthened to 51.1, with purchasing rising at the fastest rate in the survey’s short history.

Poland remained the weakest market at 48.3, extending its downturn to 16 consecutive months.

France’s PMI increased from 49.8 to 51.1, returning above the 50-point threshold. However, the underlying figures provide limited evidence of a sustained recovery.

Italy’s PMI fell from 51.3 to 49.6, its first reading below 50 since January. The 1.7-point decline was the largest monthly deterioration among the markets examined.

Spain’s PMI dropped from 50.2 to 49.5, its lowest level since March. Production declined at its fastest rate since the end of 2023, even after adjustment for normal summer shutdowns.

August’s industrial improvement therefore came with a renewed warning: freight demand may be recovering in parts of Europe, but the supply chains serving it remain costly, disrupted and highly uneven.

Source: trans.info