July manufacturing PMI rises to 51.9, with output index climbing to 52.9, the highest since early 2020, despite weak demand.
Eurozone manufacturing activity expanded to a three-month high in July, with the final PMI reading at 51.9, slightly below the preliminary 52.0. The output index surged to 52.9, marking its strongest growth in 52 months, driven by backlog completions and a modest rise in new orders.
The uptick follows a prior reading of 51.4, with Germany leading the recovery while France and Spain saw declines. Despite the improvement, demand conditions remain fragile, and supply chain pressures persist, though at their lowest level in five months.
Inflation pressures eased in July, but elevated energy prices and geopolitical tensions continue to pose risks. S&P Global cautioned that the growth momentum may fade as autumn approaches, with divergences across the region highlighting ongoing struggles in some economies.