July manufacturing PMI rose to 51.9, with output surging to its strongest level since early 2020, though demand remains fragile.
Eurozone manufacturing activity accelerated in July, with the final PMI reading at 51.9, slightly below the preliminary 52.0 but up from June’s 51.4. The output index climbed to 52.9, marking a 52-month high, driven by backlog completions and a modest rise in new orders.
Despite the uptick, demand conditions remain weak across the region, with supply chain pressures and elevated energy costs persisting. Germany, the Netherlands, Austria, and Greece saw robust production growth, while France and Spain reported declines, highlighting regional disparities.
Supply bottlenecks eased marginally, and inflation pressures softened, though geopolitical tensions continue to pose risks. Analysts caution that the current momentum may fade as autumn approaches, with underlying demand still fragile.