Today is manufacturing Purchasing Managers Index (PMI) day in Europe. It is a day where the new readings on how the sector is doing in key economies across the continent are released.
Markit’s PMI shows the business conditions across the whole sector. However, any reading above 50 is a sign of growth whereas, anything below this number means that the manufacturing industry is shrinking.
In terms of the continent-wide reading, the figure for July stood at 52.4 and the most recent figure was 52.3. This was just short of the expectations of 52.4.
Both France and Greece have shrinking manufacturing sectors and Spain, Italy and Germany are gradually leading up to strong growth. Despite this, some figures were lower than the expectations.
The readings for August are as follows:
Although there have been some strong figures, not all countries met their forecasts and some were even below July’s reading.
Spain was in line with the forecasts but was below July’s figure of 53.6. Italy was behind on both the forecast and the previous reading, as it was expected to have a reading of 54.8 and was even lower than July’s 55.3.
France held the same figure from July but was lower than the expected number of 48.6. Although Greece is at a low point, it has improved, as the reading was 30.2 in July.
Germany is on a balanced ground, exceeding its forecast of 53.2 but keeping the same reading from July. The UK was short of the forecast of 52 and the August reading was also down from July’s figure of 51.9.