As UK manufacturing hits a three-month low, Eurozone factories are reporting record output figures. Markit’s PMI survey shows output in German, Dutch and Austrian factories at the highest level for six years. Greece is also showing progress, with a 23-month high. Only Spain shows a new low in the survey. The data is based on interviews with factory bosses, so it is not based on hard figures, however it gives a sense of the mood in Eurozone manufacturing. Commenting on German growth, Trevor Balchin, a senior economist at IHS Markit said, “Although output growth held broadly steady and job creation eased slightly since May, the expansion in new orders accelerated further. “Input price inflation slowed for the second month running to the weakest since November 2016, but remained stronger than the 21-year survey trend level. Output prices increased at the sharpest rate since February.” UK performance disappointing However, Rob Dobson, a senior economist at IHS Markit commented on UK performance, “New business rose at the weakest pace for nearly a year and growth was down sharply from April’s near three-year high. This slowdown was largely centred on the domestic market, where increased business uncertainty appears to have led to some delays in placing new contracts. “Export orders remained disappointingly lacklustre despite the ongoing competitiveness boost of the weak sterling exchange rate.”
Vocabulary Highlight for solutions
job creation – making new jobs survey trend – average performance over several surveys mood – attitudes and opinions, feeling domestic market – in the country lacklustre – not impressive, disappointing
Questions Which markets are performing most strongly? Which Eurozone areas are not performing so well? What has decreased slightly in Germany?