- Chris Williamson, chief economist at Markit
The Euro zone's manufacturing sector continued to expand strongly in July amid the turbulent Greek debt crisis during the month. The final manufacturing PMI for the Euro area slid to 52.4 in July, down from 52.5 a month earlier, but overshooting economists' forecast for 52.2 points. New order growth weakened last month, with the sub-index falling to 52.2 from 52.7 as factories increased their prices for a second month in a row, albeit at a weaker rate than in June. Business activity in the German manufacturing sector remained in the green zone for the eighth consecutive month, albeit with a weaker reading, the fresh Markit data showed. July's final manufacturing PMI edged lower to 51.8, down from the final reading of 51.9 points in the prior month. However, in France, the region's second biggest economy, factories failed to keep momentum in the reported month, with the final manufacturing PMI falling to 49.6, compared with the final reading of 50.7 recorded in June. At the same time Spanish manufacturing sector continued to enjoy a robust performance, as the corresponding gauge came in at 53.6 in July, slightly falling from June's 54.5.
Meanwhile, the data for Greece showed a collapse in output, with the headline PMI sharply plunging to 30.2, the lowest level on record, with data series dating back to 1999.The services and composite PMI release are due on Wednesday.
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