Eurozone manufacturing PMI rises to six-month high

Eurozone manufacturing growth rose to a six-month high in June, according to Markit, although it warned that the data was gathered before the UK’s decision to the leave the European Union.

Markit’s final eurozone purchasing managers’ index for June came in at 52.8, up from the flash estimate of 52.6 and May’s reading of 51.5, with growth in new orders and production accelerating to the fastest in the year so far.

Growth was led by a resurgent Germany and Austria, where the rates of expansion accelerated to the fastest since February 2014 and May 2011, respectively. Upturns in Italy, Spain and Ireland also gathered pace, but slowed in the Netherlands.

Meanwhile, France was the only nation to signal contraction.

Chris Williamson, chief economist at Markit, said: “Euro area manufacturers enjoyed their strongest growth so far this year in June. An upturn in the rate of production growth signals factory output is expanding at a near-2% annual pace, which should help to drive further modest economic growth in the second quarter.

“However, the data were collected prior to the UK EU referendum result, so any Brexit impact is yet to be seen in the PMI.”