Businesses still confident - economist (Il Sole 24 Ore Radiocor) - London, 01 Jul - In June, the eurozone's purchasing managers' index (PMI) for the manufacturing sector fell to 45.8 from 47.3 in May, reaching a two-month low, according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

The manufacturing PMI output index declined to a six-month low of 46.1 in June from 49.3 in May.

"Is this another bull trap for the manufacturing sector, similar to the false start at the beginning of 2023 when output briefly improved only to fall back again for a longer period? Indeed, the PMI indices for all eurozone countries, except Italy, deteriorated in June. However, we are inclined to see this more as a temporary blip rather than a sign of a prolonged downturn. Manufacturing growth was seen in other parts of the world in June, such as the United States, UK, and India, according to their respective Flash PMI. This global recovery provides a supportive backdrop for eurozone manufacturers," according to Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

"Additionally, optimism about future production remains as high as it was in May, indicating that businesses are still confident about the coming year," he added.

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(RADIOCOR) 01-07-24 10:07:37 (0191) 5 NNNN