Europe/PMI-The contraction of the manufacturing sector fuels fears of recession | Photo credit: Shutterstock
LONDON, Aug 1 (Reuters) – Key final results from S&P Global’s surveys of manufacturing purchasing managers in Europe, released on Monday:
EUROZONE – THE RISKS OF RECESSION INCREASED
LONDON – Manufacturing activity in the euro zone contracted in July as manufacturers were forced to stockpile unsold goods due to weak demand, results from the S&P Global survey of manufacturing managers show. purchases, which reinforce fears that the European Union could fall into recession.
The manufacturing PMI index came out at 49.8, just above the “flash” estimate of 49.6 but nevertheless below the 50 mark for the first time since June 2020.
An index measuring production, which goes into the composite PMI calculation due Wednesday, fell to 46.3, its lowest level in more than two years. In June, it was 49.3.
“The deterioration in the economic situation that began in June in the manufacturing sector in the euro zone worsened at the start of the third quarter, increasing the risks of recession. Apart from the months of confinement imposed during the health crisis, new orders recorded their contraction since the sovereign debt crisis in 2012, and this trend is likely to intensify in the coming months,” said Chris Williamson, chief economist at S&P Global.
The new orders index fell from 45.2 to 42.6, the lowest since May 2020. (Report Jonathan Cable, French version Laetitia Volga, edited by Kate Entringer)