- The global manufacturing sector remained mired in contraction at the start of the second half of the year. July saw output decline further as the downturn in new order intakes was extended to a thirteenth consecutive month.
- Manufacturing production decreased for the second month in a row in July, with the rate of contraction gathering pace. The main drag on output was a severe downturn in activity in the euro area, where production contracted to the greatest extent since the height of the global pandemic in spring 2020. The performances of Austria, Germany and Italy were especially weak. There were also signs of weakness developing in Asia. Japan, mainland China, South Korea, Taiwan, Vietnam and Malaysia all saw output contract. North America was a comparative bright spot, with mild growth in Canada and Mexico. A slight expansion of output in the US represented a stabilisation following June’s marked retrenchment.
- The downturn at global manufacturers was driven by several factors, including weak new order intakes, deteriorating international trade flows and a correction in stock levels in response to the weak demand environment. – S&P Global
Global Macro Monitor 