The situation of production in the euro area worsened / sharp drop in demand
According to Webangah News quoted by Mehr News Agency, the final Purchasing Managers’ Index (PMI) of the Eurozone, compiled by S&P Global and known as the HCOB index, rose from 47.3 months in June May fell to 45.8, though slightly higher than the 45.6 previously forecast. This index has been below 50 for two years, a measure that separates growth from contraction.
The index measuring manufacturing included in Wednesday’s composite PMI, which is considered a good measure of economic health, rose from 49.3 in the month May reached 46.1, which is the lowest level in the last six months. Although this number was slightly higher than the forecast of 46.
PMIs for all eurozone countries except Italy worsened in June, according to Hamburg Bank economists. However, there is a tendency to see this decline as more of a temporary blip than a sign of a long-term recession. In June, in other parts of the world based on the purchasing managers index of each country, such as America, England and India, production growth has been observed. This global improvement provides the necessary support for the producers of the Eurozone.
European new orders index has also decreased from 47.3 to 44.4. The decline came despite factory price cuts for the 14th straight month, although it was slightly steeper than in previous months. Economists see a sharp decline in new orders for the future as very disappointing. The decline comes after a record 25-month streak of falling demand, but there was some vague hope of an improvement in May, when the new orders index showed a slight increase. The conditions were created.
