With orders at record lows, Eurozone manufacturing rises 0.8 points to 43.5 in August

Alemania industria

Singular Bank: In August, the final reading of the IHS Markit manufacturing PMI index for the Eurozone advanced 0.8 points from the previous month to 43.5 points (vs. 42.7 points in July), slightly below the preliminary estimate of 43.7 points, remaining in contractionary territory since August 2022 (below 50 points). A performance weighed down by the fall in new factory orders at their fastest pace since the beginning of the historical series and by lower backlogs of orders.

By country, the industrial indicator has fallen below the 50-point barrier in its four main economies:

In Germany, the manufacturing PMI rebounded slightly by 0.3 pp to 39.1 in August (vs. 38.8 the previous month), confirming the preliminary estimate. Thus, the deterioration in German industry continues, with a significant decline in new orders and production, the latter at its fastest pace since May 2020.

In France, the final reading of its manufacturing index showed an increase of 0.9 points to 46.0 points (vs. 45.1 points in July), correcting the preliminary figure of 46.4 points, showing a further contraction of the sector in the face of worsening business sentiment, production and employment.

Italy’s indicator rose slightly by 0.9 points to 45.4 points (vs. 44.5 points previously), remaining below the 50 point barrier in contractionary territory in the face of a significant drop in new orders and manufacturing output. In addition, a loss of employment in the sector has been recorded for the first time in 3 years.

Finally, in Spain, the industrial indicator fell by 1.3 points to 46.5 points from 47.8 points in July, following the largest contraction in new orders and purchases of production inputs since last November. In contrast, purchasing managers have perceived an improvement in employment.

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