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European manufacturing witnesses sharpest deterioration in 7 years

European manufacturing witnesses sharpest deterioration in 7 years

The final Purchasing Managers’ Index data released on Thursday showed that euro area manufacturing declined the most in 7 years in July.

Manufacturing PMI recorded 46.5 in July, revised up from a preliminary of 46.4, the lowest reading since December 2012, according to IHS Markit data.

The manufacturing sector has signaled a contraction for six months in a row in July, where contractions were recorded in the intermediate and investment goods sectors.  

“Germany remained a source of weakness, with its manufacturing economy recording its sharpest deterioration in operating conditions for seven years,” IHS Markit said.

The manufacturing PMI reading in Germany fell to a seven-year low of 43.2 in July from 45 in June, as export orders slipped the most since the financial crisis.

As of 08:27 GMT, the euro continued to trade lower versus the U.S. dollar at $1.1040 after dropping to a low of $1.1031, the lowest since May 2017.

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