Industrial production in the euro area is losing blood despite the large discounts made by the factories. In Europe, the Manufacturing PMI for July recorded the fastest contraction since the start of the COVID-19 pandemic. Industrial manufacturing fell significantly in Germany, France and Italy, the region’s largest economies.
Manufacturing PMI, calculated by S&P Global, fell to 42.7 in July from 43.4 points in June, the lowest level since May 2020. After this data, the markets increased their negative expectations for the composite PMI data that will be released on Thursday.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, stated that the recession will be limited to the Eurozone. Rubia expects the ups and downs of the European economy to continue.
Output Prices Decrease While Manufacturing PMI Decreases!
The slowdown in the economy and the end of the pandemic conditions led to an increase in competition between companies. Companies that did not want to lose their market share, on the other hand, took advantage of the falling input costs and reduced their prices one after the other. The output price index fell from 47.0 to a 14-year low of 45.0.
However, insufficient demand caused the decline in the PMI index to continue.
Faced with low PMI data, the decision of the European Central Bank ECB at the next meeting is a matter of curiosity.
The data announced today in our country revealed that there was a more limited decrease in our country.
