Manufacturing returned to growth in the Eurozone
Factories in the Eurozone made a stronger return than the first announced in July. The manufacturing sector in the region has grown for the first time in a year and a half
While the manufacturing sector purchasing managers index (PMI) announced by IHS Markit exceeded the initial data with 51.8, consumer products performed particularly well. June data was 47.4.
Companies in the sector reported that the accumulated jobs continue to decline and continue to decrease their workforce in the 15th month in a row. This may be a warning for future activities.
Manufacturing PMI in Europe, the largest economy in Germany, exceeded the first announced data in July. However, the PMI report shows significant reductions in the workforce.
The regional economy is at a critical point as it enters the third quarter. There is a similar trend in Asian countries and a moderate increase in manufacturing. However, it is wondered whether this acceleration can be continued even though the first leap is strong in Europe.
“Labor figures remain a major concern, especially because the labor market is probably the key to the economic recovery path,” said Chris Williamson of IHS Markit. Williamson emphasized that the rate of decrease in the workforce has decreased compared to the peak of the crisis, but is still high compared to any period of 2009.