The sector’s PMI index fell to 52.1 from 54.6 in May, the lowest since August 2020, although it narrowly exceeded the first estimate published during the month, which had given it at 52. ,0.
The index measuring production fell to a two-year low of 49.3, indicating a contraction, following 51.3 in May. This figure enters into the calculation of the composite PMI index expected next Tuesday, considered a good barometer of global economic activity.
“The manufacturing sector in the euro zone turned down in June with the first drop in production in two years amid rapidly deteriorating demand,” summarizes Chris Williamson, chief economist at S&P Global.
“Demand is weakening and businesses are reporting that their customers are becoming more cautious regarding spending due to rising prices and economic uncertainty.”
The new orders sub-index, at 45.2 following 48.7 in May, reflects an increasingly marked contraction and is at its lowest since May 2020.
(Reportage Jonathan Cable, French version Marc Angrand, edited by Kate Entringer)
