Source: Sharecast
The final estimate of the eurozone manufacturing PMI increased to 50.7 last month, up from 49.8 in July and slightly ahead of the preliminary estimate of 50.5.
That was first monthly improvement in operating conditions for manufacturers in the single currency union since June 2022.
Among major economies, Austria and Germany were the only ones whose manufacturing industries remained in contraction in August – though the German PMI still posted a 38-month high of 49.8.
France and Italy saw a return to growth, albeit only marginally, while Greece and Spain posted strong expansions, and moderate growth was seen in Netherlands and Ireland.
The overall eurozone manufacturing PMI output index surged to a 41-month high of 52.5, up from 50.6 previously, while total new order volumes increased for the first time in close to three-and-a-half year due to a better domestic sales environment.
“The economic recovery in the manufacturing sector is broadening, as conditions are improving in six out of the eight countries for which PMIs are recorded—compared to only four countries in the previous month," said Cyrus de la Rubia, chief economist at HCOB.
“Incoming orders also offer hope for a sustainable recovery. After over three years of continuous declines, companies are now seeing a slight increase. Domestic orders have risen and are offsetting the weakening demand from abroad."
However, de la Rubia noted that the recovery "remains fragile", with the survey showing a slightly faster pace of declining order backlogs as firms steel affected by uncertainty.