J.P. Morgan AM: Manufacturing in Europe remains a weak spot
While the European economy continues its gradual upswing, the manufacturing sector remains an area of concern.
Eurozone business surveys for August provided further evidence of the divergence between solid output in services and much weaker activity in manufacturing, with last week’s flash Purchasing Managers’ Index (PMI) manufacturing print falling to 45.6.
At a country level, German data was particularly anaemic while in France, a disappointing manufacturing print was offset by an Olympics-driven boom in services. Overall, the strength in services sectors appears sufficient to keep the eurozone economy growing over the coming quarters. Yet given the region’s relatively high dependence on manufacturing, stronger momentum into 2025 will likely require all of Europe’s growth engines to start firing.
Index level, eurozone PMIs
