Eurozone’s manufacturing activity growth decelerates slightly more than initially estimated in August - IHS Markit

The latest report by IHS Markit revealed on Wednesday the seasonally adjusted final Eurozone Manufacturing PMI stood at 61.4 in August, being fractionally lower than the earlier “flash” reading of 61.5, and down from 62.8 in July. This was the lowest reading since February and marked the second successive month in which growth has slowed since June’s survey-record expansion.

Economists had forecast the index to stay unrevised at 61.5.

According to the report, goods production growth weakened to a six-month low, while total new orders increased for the fourteenth straight month and new export business also rose at a marked rate. Elsewhere, rate of job creation eased modestly from July’s all-time high. supplier delivery times lengthened to a significant extent amid strong demand for production materials and inputs, though the rate of lengthening eased slightly further from May’s record. On the price front, cost inflation slowed for the first time since input prices started rising again in August 2020, but remained elevated; output charge inflation eased for the first time since January, but remained historically sharp after July’s survey high.

Of the monitored euro area constituents, the Netherlands once again recorded the strongest improvement in manufacturing business conditions, despite growth here decelerates to a five-month low. Weaker expansions were also registered in Germany, Ireland, Austria and France.