European manufacturing remains in contraction

  • by Ahmed Mamdouh
  • September 2, 2019, 12:46 AM
  • 32 Views
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The final Purchasing Managers’ Index data released on Monday showed that euro area manufacturing remained contraction for seven months in August.

Manufacturing PMI recorded 47.0 in August, unchanged for the preliminary reading and matching analysts’ projections, according to IHS Markit data.

The manufacturing sector has signaled a contraction for seven months in a row, where economic conditions deteriorated in Germany, Italy and Spain.

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“Germany is suffering the steepest decline, in part reflecting slumping global demand for autos and business machinery. While France bucked a wider downturn trend, even here growth was only very modest.”,” IHS Markit said.

The manufacturing PMI reading in Germany was revised down to 43.5 in August from a preliminary of 43.6.

Meanwhile, there are some speculations that governments will launch fiscal stimulus, while the ECB will announce the restart of bond purchases during the policy meeting on September 12.

As of 08:35 GMT, the euro continued its slump for a sixth straight session to $1.0980 after reporting a 1.46 percent loss last week. 

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