Purchasing Managers Index: Europe: Difference between revisions

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+== Developments ==
+=== July 2023 ===
+After stagnating in June, the eurozone economy started the third quarter with the fastest contraction in business activity since November last year, latest HCOB PMI® survey data compiled by S&P Global showed. July’s contraction was brought about by a deepening downturn in the manufacturing sector and a near-stalling of services output. There was also notable weakness with respect to demand as total new orders fell again and to the quickest extent in nine months. Export performance was a considerable drag as demand from foreign clients fell at the steepest rate since the start of the COVID-19 pandemic over three years ago.
+Falling new business led to a greater reliance on backlogs of work to help sustain activity levels where possible. Backlogs fell for the fourth month in a row and at a faster pace. Employment growth meanwhile slowed and business confidence weakened. A further cooling of price pressures was also recorded, although this continued to be heavily driven by the manufacturing sector as services companies registered still-elevated rises in both their costs and prices charged.
+* HCOB Eurozone Composite PMI Output Index at 48.6 (Jun: 49.9). 8-month low.
+* HCOB Eurozone Services PMI Business Activity Index at 50.9 (Jun: 52.0). 6-month low.
+* Eurozone economy slows; price pressures cool but stay services-driven
+[[File:Screenshot 2023-08-17 133717.png|center|thumb|715x715px|<ref>https://www.pmi.spglobal.com/Public/Home/PressRelease/463b303e5de743e9a8247d3657c22d92</ref>]]
+==== Manufacturing ====
+The eurozone manufacturing sector saw its downturn worsen at the start of the third quarter, according to the latest HCOB PMI® survey data. Production volumes, new orders, employment and purchasing activity all declined at faster rates than in June. Excluding pandemic-related and lockdown-hit months, the reductions seen for factory output and demand for eurozone goods were the most severe since the global financial crisis in 2008-09. This was also true of other survey indicators such as new export orders, backlogs of work, and quantity of purchases.<ref>https://www.pmi.spglobal.com/Public/Home/PressRelease/463b303e5de743e9a8247d3657c22d92</ref>
+“It looks like the manufacturing recession is here to stay in the eurozone. Stronger declines in output, new orders and purchase volumes at the start of the third quarter back up our view that the economy as a whole is in for a bumpy ride in the second half of the year. “The manufacturing sector’s rough patch is the result of a classic inventory cycle, where companies have purchased too many goods. As companies adapt to the new reality of reduced demand and faster deliveries, there will be some over-thetop reactions in terms of destocking. As a result, renewed stock-building can be expected in 2024, taking the sector out of the slump. Until then, there are some lean times ahead.”
+* HCOB Eurozone Manufacturing PMI at 42.7 (Jun: 43.4). 38-month low
+* HCOB Eurozone Manufacturing PMI Output Index at 42.7 (Jun: 44.2). 38-month low
+* Prices of goods leaving eurozone factory gates reduced to greatest extent since September 2009
+<u>Countries ranked by Manufacturing PMI:</u>
+July Greece 53.5 14-month high
+Spain 47.8 7-month low
+Ireland 47.0 38-month low
+Netherlands 45.3 4-month high
+France 45.1 (flash: 44.5) 38-month low
+Italy 44.5 2-month high
+Germany 38.8 (flash: 38.8) 38-month low
+Austria 38.8 39-month low
+==== Services ====
+The HCOB Eurozone Services PMI Business Activity Index fell for a third month running in July, signalling a sustained growth slowdown in the euro area’s dominant service sector. At 50.9, the index signalled a near-stalling of activity levels in July and compared with a modest upturn in June (index recorded 52.0).
+* July survey data revealed a renewed reduction in new business intakes at service providers, marking the first contraction in demand for eurozone services since the end of last year. The decline, albeit only modest, was the quickest for eight months. Orders received from export markets also slumped further, July data showed.
+* The fall in new business led firms to turn their focus to their backlogs of work. Volumes of outstanding business fell for the first time since January. Employment growth was sustained nevertheless, continuing the current sequence of job creation that began two-and-a-half years ago. That said, the rise in staffing levels was the slowest in five months.