Manufacturing activity in the Eurozone returned to growth in July, a survey of Purchasing Managers’ Index (PMI) showed. The bloc’s manufacturing PMI rose from 47.4 in June to 51.8 in July, the first time the figure breaching above the 50-point threshold since January 2019. However, the recovery was uneven, with some sub-indexes remaining below the 50-point mark.
German manufacturers saw the first expansion since December 2018, while their French counterparts experienced a slight pick up in activity. British factories also reported higher output, with growth at the fastest pace in nearly three years thanks to accelerating demand after the government eased the country’s lockdown.
Eurozone’s bright number followed an increase in China’s manufacturing PMI which settled at 52.8 last month from June’s 51.2, marking the index’s third consecutive month of expansion. Taiwan’s manufacturing PMI also rose above the 50-point threshold in July. Meanwhile, manufacturers in South Korea and Japan continued to experience activity contraction, albeit at a slower pace.
However, the recovery is rather patchy with factory activity in the Philippines and Vietnam declining last month. The factory slump also deepened in India as a surge in new COVID-19 cases prompted authorities to extend lockdown measures.
