Eurozone Manuf PMI falls to 42.7 in July, sixth consecutive decrease

The HCOB Eurozone Manufacturing PMI fell to 42.7 in July of 2023 from 43.4 in the previous month, the lowest in three years, points to one full year of consecutive contractions in the currency bloc’s manufacturing sector as higher borrowing costs from the ECB continued to bite.

The decline in new orders sank at one of the fastest paces since 2009, widening the gap to the drop in output and signaling more decreases in future production, as backlogs of work continued to be cleared to sustain current operating levels.

The lower activity also forced factories to adjust production requirements.

In the meantime, falling demand for inputs, improved supply, and lower raw material prices drove input costs to decline the most since 2009, translating to lower prices charged by factories.

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