Manufacturing activity remained the same as in June. At 45.8, the updated reading was just 0.2 points above its flash estimate of 45.6.

While the rate of contraction was little changed, most of the eight monitored eurozone nations saw deepening contraction. July survey data show a slight weakness in the factory orders that have been ongoing since May 2022. This contraction is the quickest in the last three months.

The best-performing countries are Greece (53.2), Spain (51.0), and Ireland (50.1). All are above the 50-growth threshold. Netherlands (49.2) joins Italy (47.4), France (44.0), Germany (43.2), and Austria (43.1) below 50 to indicate their manufacturing economy is contracting.

Input costs increased at the fastest rate in a year-and-a-half but remained below the long-run trend. Net employment fell and with fewer new orders, industry had to rely on clearing backlogs to keep production going.

Today's update puts the Eurozone RPI at plus 15 to indicate that Eurozone data are modestly outperforming market expectations

No revisions are expected to the flash report leaving the sector PMI at 45.6, down from June's final 45.8.

The Manufacturing Purchasing Managers' Index (PMI) provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector survey incorporating around 3,000 companies. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). Released by S&P Global, national data are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. These countries together account for an estimated 89 percent of Eurozone manufacturing activity.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM manufacturing index in the U.S. and the S&P Global PMIs elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.

The S&P Global PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.