Euro zone factory output surged at its fastest pace in nearly four-and-a-half years in July, driven by firms clearing order backlogs rather than rising demand, pointing to a fragile recovery.
Economic Indicators
The headline S&P Global Eurozone Manufacturing PMI Index rose to 51.9 in July from June’s 51.4, its highest reading since April. An index measuring output bounced to 52.9 from 51.7, its highest level since March 2022.
Conflict in the Middle East has disrupted supply chains and sent energy costs soaring, causing difficulties for manufacturers. Inflation in the common currency bloc rose to 2.9% in July from 2.8% a month earlier.
Orders rose only marginally in July, well below the pace of output growth, suggesting factories are running hot on old work rather than new business. Export orders fell again, with declines in France, Spain, Italy, and Austria more than offsetting gains elsewhere.
Factory employment fell again in July, extending a run of job cuts, as companies grew more cautious about the prospect of a slowdown in work.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
