Eng
Europe’s manufacturing sector edged closer to stabilisation in July, with rising output in some markets offset by continued weakness in others. While the eurozone PMI rose to a three-year high, the recovery remains fragile.
The Composite PMI rose to 51.0, up from 50.6 in June, driven largely by improvements in the services sector. The services PMI reached a six-month high of 51.2, while the manufacturing index edged up to 49.8; the highest in three years but still below the 50.0 threshold, signalling continued contraction. Output rose slightly, but new orders declined again, highlighting weak demand.
Ireland, Spain, the Netherlands and Greece all posted Manufacturing PMIs above 50, while Germany (49.1), Italy (49.8), Austria (48.2) and France (48.2) remained in contraction.
Germany’s PMI rose to 49.1, a 35-month high, though still signalling contraction. Output expanded for a fifth month, but momentum slowed amid softer demand. Export growth also weakened following a spring rebound led by the United States.
The UK’s manufacturing PMI rose to 48.0 in July, the highest since January, though still below the neutral mark. New orders declined for the tenth month. Export demand also fell.
Polish factories weighed down by export slump and weak demand from Germany
Poland’s PMI rose to 45.9, up from 44.8, but remained well below the eurozone average. New and export orders both fell sharply.
French factories hit by sharpest drop in new orders this year. France’s PMI held steady at 48.2 in July. New orders fell at the fastest rate since January, and export demand dropped to its lowest level of the year.
Italy’s manufacturing PMI rose to 49.8, the highest since August 2024. Output and new orders declined only slightly, with improvements seen in the investment goods segment. For the first time in nearly three years, manufacturers began rebuilding raw material inventories, signalling tentative confidence.
Source: trans.info