EZ May Factory Growth Slips From Multi Year Highs: IHS Markit

--Eurozone July Manuf PMI Falls to 56.6 From 57.4 in June

     LONDON (MNI) - Eurozone manufacturing output growth decelerated modestly

from recent highs in July, a survey released Tuesday showed, with sector

employment gains remaining buoyant. 

     The May final Markit Manufacturing Purchasing Managers' Index stood at

56.6, down from June's 57.4. 

     According to the survey, growth was again seen across all of the "Big Four"

nations, with employment growth remaining buoyant, with French jobs growth at a

17-year high.

     "Employment rose in all of the nations covered, led by robust increases in

Austria, the Netherlands and Germany. Jobs growth improved in France, Spain and

the Netherlands, but eased elsewhere. In the case of France, the rate of

increase was the fastest in almost 17 years," the survey said.

     "Eurozone factories were buzzing with activity again in July. The PMI came

in slightly below the earlier flash estimate, slipping to a four-month low, but

this

is still an encouragingly buoyant reading. The survey indicates that

manufacturing output was growing at an annual rate of approximately 4% at the

start of the third quarter, sustaining the best growth spell that the region has

seen for six years.," said Chris Williamson, chief business economist at IHS

Markit. 

     "Germany clearly remains a major driver of the upturn, with only

neighbouring Austria and the Netherlands enjoying faster rates of expansion. But

this is a broad-based revival nonetheless, with even Greece enjoying its first

back-to-back monthly improvement in manufacturing conditions for three years,"

he said.

     Input cost inflation fell from recent levels, which will be welcome news

for central bank policy makers.

     "Employment growth meanwhile continued to run at one of the highest rates

seen for at least 20 years, with the hiring boom underscoring the current

ebullient mood within euro area factories," Williamson added. 

     The full text of the IHS Markit release can be seen here: goo.gl/Gt1TWA

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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