The industrial production of euro zone fell last month for the first time since the initial wave of the coronavirus pandemic. coronavirus two years ago as higher prices and bleak economic prospects kept consumers wary of shopping, a survey showed.
O Purchasing Managers Index (PMI) S&P Global fell to 52.1 in June from 54.6 in May, its lowest since August 2020 but just above the preliminary reading of 52.0.
The sub-index measuring production fell below the 50 mark that separates growth from contraction to a two-year low of 49.3. In May it reached 51.3.
“Eurozone manufacturing went into decline in June, with production falling for the first time in two years amid a sharp drop in demand,” said Chris Williamson, chief business economist at S&P Global.
“Demand is now weakening as companies report that customers are increasingly cautious about spending due to rising prices and uncertain economic prospects.”
The new orders sub-index fell further below breakeven to 45.2 from 48.7, its lowest point since May 2020. Consumers have been shunning purchases due to rising prices and recession fears.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
