CdM | The Eurozone manufacturing sector is regaining momentum, but with caution. At the start of the third quarter, operating conditions stabilised broadly, according to the PMI index. ‘With the new trade framework agreed between the EU and the US, uncertainty should ease and the signs point to a continued upward trend in the coming months.’
This is the view of Hamburg Commercial Bank, which comments that supply chains “remain under relatively high pressure. Delivery times have lengthened. Given the fragility of the recovery, it is not demand that is causing customers to wait longer for their products.‘
’The volatility of US tariff policies and the uncertainty arising from geopolitical tensions could play a key role here. We expect companies to continue to face sudden supply chain disruptions in the foreseeable future,” they say.
In July, the eurozone manufacturing PMI rose from 49.5 in June to 49.8 in July, its highest level in three years. Standing just below the no-change level of 50, the latest reading indicated a near stabilisation of operating conditions in the eurozone manufacturing sector.
The eurozone as a whole recorded an increase in manufacturing output levels in July, marking five consecutive months of expansion. However, the increase slowed slightly compared to June and was the weakest since last March. A further decline in new orders affected production. The deterioration in demand was slight, but was still the fastest in four months.
