A new net weakening of activity in industry in the euro area is confirmed in the month of July. The final Markit Eurozone Manufacturing PMI fell to its lowest value since the start of the recovery in October 2009, at 50,4. The value thus marks a drop from 52 in June, resulting in line with the previous flash estimate and with analysts' expectations.
The manufacturing sector of Euroland is thus ever closer to a stagnation of activity. In fact, the 50 point quota represents the threshold that delimits recession and growth. The slowdown - explains Markit - was generalized and involved almost all national SMEs: down in Germany, France, the Netherlands and Austria, while pre-existing recessions in Greece and Spain accentuated. The figure in Italy is on the rise, passing from 49,8 points in June to 50,1, but remaining close to stagnation.
The study center notes that both the consumer goods and intermediate goods sectors observed a deterioration in operating conditions in July. Employment in industry, on the other hand, continued to recover, but at a slower pace since last October.
