Europmi: Industry after three years finally came out of the recession. The economic economy “dragged” the boom

We finally lived to see. For the first time since June 2022, PMI crossed the limit of 50 points for the production sector of the eurozone and pointed to a slight increase in economic activity in this sector.

“Industrial” PMI for the euro area in August adopted a value of 50.5 points in relation to 49.8 points recorded in July. This is the highest reading in 38 months, but above all the first result in over three years above 50 points. Thus, the first manifestation of the increase in economic activity in European industry in such a long time.

– The situation begins to look better. Economic activity has increased both in industry and in services. Generally, we see a slight acceleration of growth over the past three months. And this despite obstacles, such as American duties and general uncertainty – this is how the results of the August study were commented by Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

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Above the limit of 50 points, the “service” PMI for Euroland also persisted, which adopted a value of 50.7 points. It is less than in July (51.0 points) and a bit from the expected 50.8 points, but it is still a signal of growing activity in the service sector. Combined PMI for the services and industry of the euro area adopted a value of 51.1 points and it was the highest reading in 15 months.

Below 50 points, however, there were results for the largest Euroland economies. But there was also an improvement. In the case of Germany, both “service” (50.1 points) and “industrial” (49.9 points) PMI were near the revival limit. It was similar in France, where, however, both indicators were slightly below 50 points (49.9 points, respectively, 49.7 points for industry and services).

This means that The boom was “pulled” by smaller economies of Euroland. In July, Spain, the Netherlands and Ireland were doing particularly well. Anyway, PMI's results for July signaled that the euro area was on the threshold of revival. And although due to the insane energy policy of Berlin and Brussels and the overwhelming EU bureaucracy it will not be an exaggerated increase, it is better than stagnation observed over the previous two years.

It is worth adding that z The more and more positive PMI reads for the euro area corresponded to the terrible results for Poland. In July, PMI for the Polish industry improved only slightly, growing from 44.8 points to 45.9 points. It was an indicating reading – at least theoretically – for a strong decrease in activity in the Polish manufacturing sector. Nevertheless, he was a bit slower relative to the catastrophic result for June. Such a large discrepancy in PMI results for Poland and Euroland is surprising economists and some people make you look for mistakes in the selection of sample or seasonal equalization of data.

The more that the very poor PMI readings for Poland did not find confirmation in the results of industrial production published today. In July, for the first time in many reading of the dynamics of the production of the Polish industry sold, the economists positively surprised, although the increase in production itself amounted to only 2.9% yard and only by 0.2% MDM. The publication of the August PMI for the Polish industry is scheduled for September 1.

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