Sector News

Eurozone growth slips in July as manufacturing decline accelerates

August 6, 2019
Chemical Value Chain

LONDON (ICIS)–Eurozone private sector growth slowed closer to a standstill in July on the back of continuing deterioration in manufacturing sector output, according to data from IHS Markit on Monday.

The eurozone composite purchasing managers’ index (PMI) slipped to 51.5 in July compared to 52.2 in June, as solid if slightly slower service sector growth struggles against the sharpest month on month drop in manufacturing sector activity since April 2013.

A PMI score of 50.1 or higher indicates expansion.

The sixth consecutive month of manufacturing sector weakness saw Germany’s composite PMI slip to 50.9 from flash estimates of 51.4 as bearish industrial output almost completely offset service sector growth.

Other key eurozone economies, France, Spain and Italy generated PMI scores of 51.9, 51.7 and 51.0 respectively.

“The service sector continued to sustain the expansion of the overall eurozone economy at the start of the third quarter, but there are signs that the scale of the manufacturing downturn is starting to overwhelm,” said Markit chief business economist Chris Williamson.

Weak demand continued to weigh on eurozone growth, with manufacturing order book levels declining markedly during the period. Employment rose month on month despite the sluggish conditions but the rise was the weakest in more than a year.

Business confidence slipped to its lowest levels in five years, with firms in Germany the least optimistic about business activity over the next 12 months.

The overall pace of economic expansion indicated by the PMI data hints that GDP growth has slipped closer to 0.1% during the month, according to Williamson.

““Trade war worries, slower economic growth, falling demand for business equipment, slumping auto sales and geopolitical concerns such as Brexit led the list of business woes, dragging manufacturing production lower at its fastest rate for over six years,” he said.

“There are signs that [consumer demand] is also losing impetus… adding another headwind to the economy for the coming months,” he added.

By & Source: ICIS News

comments closed

Related News

December 3, 2022

Corteva to acquire Stoller Group for $1.2 billion

Chemical Value Chain

Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.

December 3, 2022

OMV introduces new corporate structure to drive sustainable growth and innovation

Chemical Value Chain

OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.

December 3, 2022

What does the current downturn in industrial manufacturing mean for executives searching for a senior role in the chemicals industry?

Chemical Value Chain

The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.