July’s flash PMI reading signals accelerating expansion in Eurozone manufacturing, surpassing expectations and June’s 51.4 print.
Eurozone manufacturing activity expanded at a faster-than-expected pace in July, with the flash HCOB Manufacturing PMI rising to 52.0 from June’s 51.4. Economists had anticipated a modest increase to 51.3, making the actual print a surprise to the upside.
The index, compiled by S&P Global and HCOB, surveys senior executives in the manufacturing sector and serves as a leading indicator for GDP, industrial production, and inflation. A reading above 50 indicates expansion, while below 50 signals contraction. June’s figure was revised slightly higher from an initial 51.3.
The stronger-than-expected data suggests improving business conditions in the Eurozone’s manufacturing sector, which may support the Euro (EUR) in currency markets.