Eurozone: Manufacturing outlook steadies as year-end hopes build – ING
ING’s Bert Colijn notes that Eurozone industrial production slipped by 0.1% in both June and July, leaving output broadly unchanged from a year earlier. He highlights resilience in capital goods and energy, but continued weakness in consumer-focused sectors, especially non-durable goods.
ING's Bert Colijn reports that Eurozone industrial production remained stagnant in June and July, with output staying roughly unchanged year-over-year. Colijn acknowledges resilience in capital goods and energy sectors, but highlights continued weakness in consumer-oriented industries, particularly non-durable goods. Despite a weak start to the year, the Eurozone's manufacturing sector has shown steady improvement, with four consecutive months of growth following a weak January.
This resurgence can be attributed to the region's relative advantage over Asia and increased defense spending. While the latest figures suggest a lack of momentum, Colijn points to a more optimistic manufacturing sentiment and stronger Purchasing Managers' Index (PMI) data, which indicate potential for better performance later in the year.
Despite energy price increases, the PMI suggested accelerating output in August. Although manufacturing is unlikely to significantly contribute to GDP growth in the third quarter, there is hope for stronger performance towards the end of the year.
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