Eurozone manufacturing downturn deepens in July

By Tuba Ongun

ANKARA (AA) - Eurozone manufacturing activity contracted in July at the fastest rate in over three years amid lower demand, according to preliminary data released on Monday.

The Hamburg Commercial Bank flash eurozone manufacturing purchasing managers’ index (PMI) fell to a 38-month low of 42.7 in July from 43.4 in June, a survey by the US-based financial services company S&P Global revealed.

New business orders posted one of the steepest declines since 2009, pointing out that companies will seek to cut output further in the coming months in response.

Excluding the COVID-19 lockdown months, backlogs of work fell the most since 2009.

Prices charged by manufacturers fell at a rate not seen since the height of the global financial crisis in 2009 amid slumping demand, according to the survey.

Manufacturers also adjusted to lower production requirements by further reducing their inventory levels.

HCOB Flash Eurozone Manufacturing PMI Output Index decreased from 44.2 in June to 42.9 in July, a 38-month low.