EUROZONE OUTLOOK
GLOBAL OUTLOOK
EUROZONE by ROYCE LOWE
IHS Markit’s Eurozone Manufacturing Composite Purchasing Managers’ Index (PMI) rose to 39.4 in May from 33.4 in April, as the continued sharp contraction in Eurozone manufacturing continued.
Russia’s crude steel production for April was at 4,700 MT, down 19.4 percent year-over-year; Ukraine’s was 1,339 MT, down 30.9 percent yearover-year.
There were sharp drops in new orders and production, but at noticeably slower rates than in April. There is a pessimistic outlook on the employment front, with France, Spain and Germany particularly hard hit, but with severe reductions in all Business confidence showed a slight improvement, and was up to a three-month high.
IHS Markit’s PMI for the UK saw an easing in the pace of contraction since April, rising from 32.6 in April to 40.7 in May. Production, new orders, and employment were all down, but less so than in April. There were some pockets of growth, mostly linked to healthcare-related or PPE products. There is a general feeling of uncertainty in UK manufacturing. The UK produced 560 MT of crude steel in April, down 11.2 percent year-over-year.
Car sales in Western Europe were down 80 percent in April, with French sales down 88.8%; German down 61.1%; Spanish down 96.5%; Italian down 97.6% ; and UK down 97.3%. Forecasts are putting the reduction in sales for the year at 20-25 percent. Crude steel production in Germany in April was at 3,000 MT, down 10.7 percent year-over-year; in Italy 1,350 MT, down 30.7 percent year-over-year; in France 800 MT, down 37.9 percent year-over-year and in Spain 670 MT, down 48.0 percent year-overyear.
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Manufacturing Outlook / June 2020
