Eurozone: Weak manufacturing PMI numbers - BBH

The EMU's manufacturing PMI slipped to 56.6 from the flash reading of 56.8, showing a somewhat larger pullback from June's 57.4.  

Key Quotes

“It is the first decline since last August.  It puts it at its lowest level since March.  It is warning that the economy may be stabilizing after it was reported earlier today that the region expanded by 0.6% in Q2, lifting the year-over-year rate to 2.1% from 1.9%.  Growth in Q1 was revised lower to 0.5% from 0.6%.  Of note, especially when thinking about the ECB's deliberations, the manufacturing PMI found the lowest input prices in nine months, and the lowest prices paid since the start of the year.”

“In terms of national reports, the flash manufacturing PMI readings for Germany and France were revised lower.  France stands at 54.9, down from 55.4 flash but slightly above June's 54.8.  The high so far was set in April at 55.1.  Germany's manufacturing PMI slipped to 58.1 from 58.3 flash estimate and its possible cyclical peak last month at 59.6.  Italy's manufacturing PMI slipped to 55.1 from 55.2, which is slightly better than the median forecast of the Bloomberg poll.  Spain's manufacturing PMI eased for the second consecutive month.  The 54.0 reading is the lowest since March's 53.9, which is also the lowest of the year.”