PMI: Eurozone manufacturing output ends first half of the year strongly, cost pressures ease

Golden Ten Data reported on July 1 that PMI surveys indicate the eurozone manufacturing sector ended last month with its best quarterly performance since early 2022. Although weak export demand somewhat dragged overall activity growth to its lowest level since February, easing cost pressures provided factories with some breathing room. In June, the eurozone PMI edged down slightly from 51.6 in the previous month to 51.4, a four-month low, but remained above 50.0 for the fifth consecutive month, slightly higher than the previous flash reading of 51.3. The continued growth in manufacturing output in June further confirms the eurozone economy’s encouraging resilience. In fact, June’s expansion marked a successful end to the strongest quarter for eurozone manufacturing since early 2022 and is expected to offset the recent decline in the services sector. Amid continued growth, cost pressures also eased noticeably, mainly reflecting a sharp drop in oil prices this month and alleviated supply concerns.