Euro-Area Factory Orders Rise Weakest Pace in 18 Months

Euro-area new orders rose at the weakest pace in 18 months in August.

The manufacturing purchasing manager index drop from 52 in July to 51.7 in August, according to IHS Markit.

Although the gauge remained above the 50 level that divides expansion from contraction, the decline in signals slowdown in order growth and heightened uncertainty since the U.K. left the European Union.

“Euro-zone manufacturers reported a wavering performance in August, with signs that growth could slow further in coming months,” said Chris Williamson, chief business economist at IHS Markit. “Anecdotal evidence suggests that the strengthening of the euro and reduced sales to the U.K. were partly to blame for the order-book slowdown.”

According to Markit, slower order signifies that the U.K Brexit vote might be feeding through to the euro-area economy.

While six of the eight economies covered by the survey showed expansion, the region was weighed upon by downturn in France and Italy, that experience its first decline since January 2015.

The region new job creation also declines with only Ireland creating jobs.