Euro Area Manufacturing PMI

Last Release

Jul 31, 2024

Actual

45.6

Units In

Points

45.8

Frequency

Monthly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
63.4 Jun 2021	33.4 Apr 2020	50.87 Points	2007-2024	Markit Economics

In the Euro Area, the Markit Manufacturing Purchasing Managers' Index measures the performance of the manufacturing sector and is derived from a survey of 3,000 manufacturing firms. National data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. These countries together account for an estimated 90% of Eurozone manufacturing activity. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Latest Updates

The HCOB Eurozone Manufacturing PMI dropped to 45.6 in July 2024, down from 45.8 in June and below expectations of 46.1, according to preliminary data. Manufacturing output continued to decrease, marking the 16th consecutive month of contraction. Moreover, the pace of reduction was marked, having accelerated to the fastest in 2024 so far. New business fell and workforce numbers decreased to the largest extent in 2024 so far. In addition to reduced employment, manufacturers cut back on purchasing and trimmed inventories of both raw materials and finished products. Despite these cuts, rates of decline remained strong across the board. Supplier delivery times shortened for the sixth month in a row, but the pace of improvement was minor, representing the slowest progress in lead time reduction. In terms of price, cost inflation increased and reached its highest level in 18 months, while selling prices continued to drop slightly. Looking ahead, confidence among manufacturers weakened.