June’s manufacturing PMI for the eurozone came in at 51.4 points, compared with 51.6 points in May. Although the index eased slightly month on month, it remained above the 50-point threshold for the fifth consecutive month, confirming that the sector is still expanding.
The pace of production growth accelerated during the month, supported by a modest improvement in incoming new orders. This suggests that manufacturers are gradually seeing demand conditions stabilise after a prolonged period of weakness.
Export demand remains the weaker part of the picture. New export orders contracted for the second consecutive month, indicating that external demand continues to weigh on parts of the eurozone manufacturing sector.
A more positive signal came from costs. Input price pressures continued to ease, while producer prices increased at a slower pace. Lower cost pressure could support margins and improve conditions for manufacturers in the coming months, particularly if demand strengthens further.
Despite ongoing supply disruptions, business sentiment improved to its highest level in four months. The increase in confidence suggests that companies are becoming more optimistic about production prospects and the outlook for the broader industrial sector.
Overall, the June reading points to continued, though moderate, expansion in eurozone manufacturing. Faster output growth and weaker cost pressures are encouraging signs, but subdued export demand remains a key risk for the sector’s recovery.
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