The S&P Global Eurozone Manufacturing PMI slipped to a four-month low of 51.4 in June, remaining above the 50.0 threshold separating growth from contraction for a fifth month.

Euro Zone Economy Shows Resilience

A survey showed that the euro zone manufacturing output ended its best quarter since early 2022 last month with easing cost pressures giving relief to factories even as sluggish export demand partly dragged overall activity growth to its lowest since February.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “A further rise in manufacturing output in June adds to signs of encouraging resilience in the euro zone economy. June’s expansion in fact rounds off the strongest calendar quarter for euro area manufacturing production since the opening months of 2022 and will offset the recent decline that’s been recorded in the services economy.”

New orders returned to modest growth last month after stagnating in May, though the increase was only marginal. Export orders remained a slight drag. The output sub-index rose to a two-month high of 51.7 in June from 51.3. Spain and France were the only countries in the survey to record declines.

Factory headcount continued to shrink, though the pace of job losses moderated. On prices, input cost inflation fell to its softest pace since March, snapping a run of accelerating pressure stretching back to September. Output charge inflation also eased and was at a three-month low, offering some relief to buyers.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.