Il Purchasing Managers Index (percentage value reflecting the ability to acquire goods and services calculated by Markit Group) of the eurozone in June was the best of the last six years. The rate of expansion of the manufacturing sector has been very rapid, as reflected by the improved performance compared to previous years in Germany, France, Italy, the Netherlands, Ireland, Greece and Austria.
The index rose to 57.4 in June, compared to 57.0 in May. All this thanks to the increase in production due to the increase in the influx of new orders; this has led the companies to maintain the job creation rate.
The best rates of improvement in operating conditions were found, in order, in Austria, Germany and the Netherlands. Growth accelerated in France and Italy. Positive news also comes from Greece, where the PMI index has returned to an expansion phase for the first time since August 2016. The only nation that has not recorded an improvement is Spain.
If, on the other hand, we turn our attention to the rate of increase in job creation, this increased in France, Austria, Greece and the Netherlands, while in Germany, Spain, Italy and Ireland it decreased.
The importance of data is also seen in the words of IHS Markit Chief Business Economist, Chris Williamson: “Eurozone manufacturing growth gains even more momentum in June, finishing the best quarter in just over six
years. At current levels the PMI indicates an annual production growth rate of about 5% which, in turn, shows that this sector will have made a very positive contribution to economic growth in the second quarter”.
"There are no signs that this positive situation will end anytime soon – continued Williamson – “The optimism about
next twelve months has risen to its highest level in at least five years, backlogs of work are increasing at the fastest rate in more than seven years and companies are reporting near-record hiring to meet the recovery in demand. As things stand right now, manufacturing is clearly on the upswing and it seems destined to continue on this path of strong growth in the coming months".
