Economy

Sluggish PMI for the U.S. and Eurozone in July

This morning, Markit Economics has released July manufacturing PMI data for the United States, the eurozone and major EU countries. Overall, they show that the manufacturing sector continues to slow due to the sluggish global economy.

The firm said that growth of the U.S. manufacturing sector slowed to its weakest pace in nearly three years in July. Its final U.S. Manufacturing Purchasing Managers’ Index showed a reading of 51.4. That was down from the flash estimate of 51.8 and below the 52.5 in June. This PMI figure hit a 34-month low and signaled only a modest expansion in July.

PMI index readings above 50.0 signal an increase or improvement on the prior month. Readings below 50.0 indicate a decrease.

The downturn in the eurozone manufacturing sector gathered momentum at the start of the third quarter. The final Markit Eurozone Manufacturing PMI fell to a 37-month low of 44.0. That was down from 45.1 in June and below the earlier flash estimate of 44.1. This PMI has now signaled contraction for 12 straight months.

U.K. Manufacturing PMI reached a 38-month low in July of 45.4, down from a revised reading of 48.4 in June.

Also, the German composite index fell from from 45.0 to 43.0 in July, its lowest level since June 2009. The reading for France fell from 45.2 in June to 43.4, its lowest reading since May 2009. The figure for Italy slipped from 45.2 in June to 43.4, also its lowest reading since May 2009. Spain had a reading of 42.3 in July. Although that was higher than the 41.1 recorded in June, it still represents a sharp deterioration of business conditions in the sector. Greek PMI remained well below 50.0 no-change mark.

Earlier today, we had a look at China’s troublesome PMI numbers for July.

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