The growth in Eurozone's manufacturing sector contracted in July, with the figure marking the steepest decline since the beginning of COVID-19 lockdowns in May 2020, according to a report released by S&P Global on Monday. The Eurozone Manufacturing Purchasing Managers Index (PMI) stood at 49.8, hitting a 25-month low indicating the first decline in overall manufacturing sector conditions in nearly two years.
The Eurozone Manufacturing Output Index hit a 26-month low, dropped to 46.3, down from last month's reading, as supply shortages hampered factory operations, with demand falling at the fastest rate "since the eurozone sovereign debt crisis in 2012," the report revealed.
"Eurozone manufacturing is sinking into an increasingly steep downturn, adding to the region’s recession risks," commented Chief Business Economist at S&P Global Market Intelligence Chris Williamson on the publishing. "Lower than anticipated sales, reflected in accelerating rates of decline of new orders and exports, have led to the largest rise in unsold stocks of finished goods ever recorded by the survey," he added.
