| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : EU Economy Last Updated: Jul 2, 2014 - 8:39 AM


Eurozone manufacturing output losing momentum; June regional easing, dips in France and Greece
By Finfacts Team
Jul 1, 2014 - 8:56 AM

Email this article
 Printer friendly page

The recovery in the Eurozone manufacturing sector was extended to a twelfth successive month in June. Signs that the upturn is losing momentum were still evident, however, as growth of both output and new orders slowed since May. Output dipped in France and Greece.

The final seasonally adjusted Markit Eurozone Manufacturing PM (purchasing managers' index) dipped to a seven-month low of 51.8, down from 52.2 in the prior month and below the earlier flash estimate of 51.9. The average reading for the second quarter (52.4) was also slightly below that for the opening quarter of the year (53.4).

National PMI readings improved in Ireland and Spain, reaching a two-month high in the former and a seven-year record in the latter. PMI indices fell in all of the other nations, although only France and Greece signalled outright contractions.

June saw manufacturing production expand at the slowest pace since September 2013. The weaker trend was most evident in France, which saw output contract for the first time in five months and at the fastest pace during the year-to-date. Slower production growth was meanwhile registered in

Germany (nine-month low), Italy, Ireland (both four-month lows), the Netherlands (11-month low) and Greece (three-month low).

Underlying the slower expansion of production was a weaker increase in new orders. Although new business inflows rose at the slowest pace since October 2013, this nonetheless extended the current upturn in new order volumes to 12 months.

Domestic market conditions remained generally subdued, according to companies, while levels of new export business rose at the least marked pace for almost a year. France posted the worst performance, with concurrent contractions of new orders and new export business registered for the second straight month. Moreover, the rates of contraction were the sharpest during the year-to-date in both cases.

Austria also reported declines in both total and export demand, while total new orders stagnated in Greece despite an increase in new export business. Growth of new orders meanwhile slowed in Germany, Italy and the Netherlands, but accelerated sharply in Ireland and Spain.

Markit, the London-based financial research firm, said manufacturing employment rose for the sixth successive month in June, although the rate of growth remained only marginal. France reported job cuts for the third straight month, while a reduction was also registered in Greece and staffing levels were broadly unchanged in Germany and Austria. Job creation slowed in almost all of the remaining nations, the notable exception being Spain – which reported the strongest increase since July 2007.

Input costs rose for the first time in five months in June, in some cases reflecting recent oil price increases. With costs showing a modest gain, manufacturers raised their average selling prices for the second month in a row. However, rates of increase in purchase prices and output charges were only modest. Supplier delivery times lengthened for the twelfth month in a row, and to the greatest extent since June 2011.

Chris Williamson, chief economist at Markit said: "With manufacturing growing at the slowest rate for seven months in June, the PMI survey will raise concerns that the Eurozone recovery is losing momentum.

"There are encouraging signs of growth gathering momentum in the region‟s „periphery‟, especially in Spain and Ireland, and some of the slowdown in Germany may have been due to a high number of public holidays. But the overall picture is a reminder of just how fragile the region‟s recovery is looking.

"Employment is barely rising in the manufacturing sector as companies worry about waning growth of new orders, which reflects very subdued demand for goods from households and businesses.

"The slowdown will put pressure on policymakers at the ECB to do more to prevent the recovery from stalling, and we will no doubt see more calls for full-scale quantitative easing to be implemented."

The Eurozone Manufacturing PMI (purchasing managers' index ) is produced by Markit and is based on original survey data collected from a representative panel of around 3,000 manufacturing firms. National data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. These countries together account for an estimated 89% of Eurozone manufacturing activity.

The final Eurozone Manufacturing PMI follows on from the flash estimate which is released a week earlier and is typically based on approximately 85%–90% of total PMI survey responses each month. The June 2014 flash was based on 93% of the replies used in the final data.
 

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015