The IHS Markit Flash Eurozone Manufacturing PMI rose from 57.0 in May to 57.3 in June, once again its fastest pace since April 2011. This suggests that manufacturers in Europe have mostly brushed off political uncertainties, with economic growth on the continent continuing to trend in the right direction. New orders (up from 57.8 to 58.5) and output (up from 58.3 to 58.5) accelerated somewhat in June, with both at levels not seen since early 2011. At the same time, exports (down from 57.5 to 57.4) and employment (down from 56.1 to 56.0) edged lower for the month but remained encouraging overall. Looking ahead six months, the future output index reflected healthy expectations moving forward (up from 66.0 to 67.3), with that measure at its highest point since it was introduced in mid-2012. In addition to data for Europe as a whole, IHS Markit also released preliminary figures for France (up from 53.8 to 55.0) and Germany (down from 59.5 to 59.3), which were both promising despite mixed results in June.
Meanwhile, the IHS Markit Flash U.S. Manufacturing PMI eased to its slowest growth rate since September, down from 52.7 in May to 52.1 in June. It was the fifth consecutive monthly decline, down from 55.0 in January, which was the fastest growth rate in nearly two years. Nonetheless, we continue to see modest growth overall in the sector nationally, even with some softer data in most of the key variables, including new orders (down from 53.4 to 51.6), output (down from 53.3 to 52.9) and exports (down from 51.3 to 51.0). In contrast to those figures, hiring picked up somewhat in June (up from 51.9 to 52.4). While manufacturing activity in the United States was perhaps weaker than desired in this latest survey, respondents continued to be mostly optimistic about future output (down from 66.5 to 66.1), even with a slight easing in this report.