Eurozone manufacturing PMI slumps to 13-month low in August
Tom Brown
01-Sep-2014
LONDON
(ICIS)–August manufacturing sector output growth for the
eurozone was found to have slumped to its lowest level since
July 2013 in finalised data released on Monday by analyst
Markit.
The region’s purchasing managers’ index (PMI) level for
industrial growth fell to 50.7, down from earlier estimates
of 50.8 for the month, and from 51.8 in July, as rates of new
orders and export business continued to slow. PMI figures of
above 50.0 indicate growth.
Germany’s manufacturing PMI, one of the key drivers of
eurozone manufacturing output, was revised down to 51.4 for
August, from earlier estimates of 52.0, on
the back of the slowest production rate increases of the
year, with companies noting a relatively weak economic
environment.
“Warning lights are flashing in Germany’s
goods-producing sector… the survey data suggest that
manufacturing appears to be in the midst of a slowdown,” said
Germany report author Oliver Kolodseike.
France’s manufacturing sector PMI for the month was revised
up to 46.9 from earlier estimates of 46.5, but the figure
still represented the lowest PMI figure in 15 months.
“This sort of across-the-board weakness [in France’s
manufacturing sector has been a common theme in recent months
and there remains very little to suggest any turnaround in
fortunes will be imminent,” said Markit senior economist Jack
Kennedy.
Manufacturing output for Italy and the
Netherlands also slumped to their lowest levels in 14 months
and 13 months respectively at 49.8 and 51.7, while Spain’s
August manufacturing sector fell slightly to 52.8 but still
boasted the fastest rise in new orders since April
2007.
Greece’s manufacturing sector returned to growth with a PMI
of 50.1 compared to 48.7 in July due to the first increase in
new orders seen in three months. Ireland bucked the overall
bearish trend, with its highest manufacturing sector PMI
figure in over 14 years at 57.3.
“Although some growth is better than no growth at all,
the braking effect of rising economic and geopolitical
uncertainties on manufacturers is becoming more visible,”
said Markit senior economist Rob Dobson.
“The slowdown in industry is likely to add further fuel to
the fire for analysts expecting additional monetary or fiscal
stimulus to be implemented,” he added.
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