The manufacturing activity in the euro area slowed down in June after a 14-month high in May, S&P Global and Hamburg Commercial Bank (HCOB) said in a report on Monday. The Purchasing Managers' Index (PMI) stood at 45.8 in June, the lowest reading in two months. Factory production fell at the fastest pace in 2024, with new orders contracting. Buying levels also dropped, with stocks continuing to deplete. Factory jobs were also cut at the fastest rate in three months.
"We are inclined to see this more as a temporary blip rather than a sign of a prolonged downturn. Manufacturing growth was seen in other parts of the world in June, such as the United States, UK, and India, according to their respective Flash PMI. This global recovery provides a supportive backdrop for Eurozone manufacturers. Additionally, optimism about future production remains as high as it was in May, indicating that businesses are still confident about the coming year," HCOB Chief Economist Cyrus de la Rubia said.
