Eurozone Manufacturing Recovery Looks Shaky -- Market Talk

1058 GMT - Final manufacturing PMIs for the eurozone for July were somewhat disappointing, Tomas Dvorak at Oxford Economics says in a note. The PMI was revised down slightly to 51.9, dragged by underwhelming readings in both Italy and Spain. Still, price pressure in both countries appeared to soften, Dvorak says. "This is consistent with our view of limited second round effects from the ongoing commodity shock that should keep the rise in core inflation moderate over the coming months," he says. However, this is unlikely to alter the European Central Bank's caution given continuing hostilities between the U.S. and Iran and the rebound in global energy prices. "We will put another 25bp rate hike back into our baseline for our August forecast update," Dvorak says. (don.forbes@wsj.com)

(END) Dow Jones Newswires

August 03, 2026 06:58 ET (10:58 GMT)