Eurozone July manufacturing PMI rises to 52.0, output growth marks fastest pace in over four years

(1) The Eurozone's S&P Global Manufacturing PMI rose to 52.0 in July from 51.4 in June, surpassing expectations of 51.5 and marking the strongest expansion in three months. The output index increased from 51.7 to 53.0, the fastest growth since March 2022, driven by enhanced output growth. (2) Manufacturers' purchasing activity was largely unchanged, and alleviated supply chain disruptions enabled firms to increase input inventories for the first time in three years. However, manufacturers continued to lay off workers. On the price front, manufacturing input cost inflation slowed in July and output price inflation also eased, though cost pressures remain elevated. Manufacturers' confidence in future output saw a slight improvement.