The PMI in the manufacturing sector in June, released today, suggests a marked deterioration in economic conditions in this area. The index, after it fell below 50 in May, only accelerated declines in June, going back from 48.5 to 44.4. Thus, the index fell from 52.4 to 44.4 over the last two months.

According to the survey, in June there was a strong decline in new orders and production. Larger declines in these areas were only observed at the height of the financial crisis and during the pandemic. As a result, there was a significant deterioration in business sentiment, unseen since the outbreak of the pandemic in ’20. Weakening demand starts to slow down inflationary pressures, and delays in deliveries are decreasing.