Eurozone manufacturing activity fell faster than expected in June

The Eurozone Purchasing Managers' Index (PMI), compiled by German bank HCOB in collaboration with S&P Global, fell to 43.4 in June from 44.8 in May.

The euro symbol in front of the European Central Bank headquarters in Frankfurt am Main, Germany. (Photo: AFP/TTXVN)

Eurozone manufacturing activity contracted faster than forecast in June as the European Central Bank (ECB) maintained its tightening monetary policy.

Survey results released on July 3 showed that manufacturing activities in all four of the Eurozone's largest economies declined in June.

Specifically, the Eurozone Purchasing Managers' Index (PMI), compiled by HCOB bank (Germany) in collaboration with S&P Global, fell to 43.4 in June compared to 44.8 in May.

This was also the lowest level since the COVID-19 pandemic broke out, lower than the previous preliminary estimate of 43.6 and also far below the 50 threshold to be recognized as growth. The output index also fell to 44.2 - an eight-month low.

This index is part of the composite PMI index to be announced on July 5, which is considered an important measure reflecting the health of the economy.

HCOB chief economist Cyrus de la Rubia said there were growing signs that the capital-hungry industrial sector was reacting negatively to the ECB's decision to raise interest rates. In order to bring sky-high inflation down to its target of 2%,

The ECB has raised interest rates by a total of 400 basis points in different rounds and is expected to raise them by another 25 basis points this month, which is seen as reducing the purchasing power of heavily indebted consumers and businesses.

Demand weakened at the fastest pace in eight months despite cooling prices for finished goods, prompting some factories to cut staff for the first time since early 2021. The eurozone employment index also fell to 49.8 from 51.5 the previous month./.

Le Anh (Vietnam News Agency/Vietnam+)

Source: https://baodaknong.vn/hoat-dong-san-xuat-thang-6-cua-eurozone-suy-giam-nhanh-hon-du-bao-154693.html