Euro zone manufacturing PMI falls below threshold

Ai Huicha, September 1st, S&P Global commented on the final value of the euro zone manufacturing PMI in August: the latest HCOB PMI survey data shows that the euro zone manufacturing industry is still under great pressure in the middle of the third quarter, and new orders have fallen sharply. The backlog was quickly depleted, putting considerable pressure on production lines across the region. Factory employment continued to fall, albeit modestly, while purchasing activity fell sharply again as businesses continued to work to reduce inventories. Manufacturing input costs fell for the sixth consecutive month, and the overall decline was still substantial. In August, the S&P Global HCOB Eurozone PMI was below 50 for the 14th consecutive month, indicating that business conditions have deteriorated again from the previous month. The headline index came in at 43.5, up from July's 38-month low of 42.7, but still pointing to another sharp deterioration in the health of the euro zone's manufacturing economy.