Final manufacturing PMI 51.4 vs 51.3 prelimPrior 51.6The overall euro area manufacturing sector still posted growth in June but activity declined to a four-month low. That comes despite a marginal improvement in demand conditions, with output picking up slightly alongside new orders. That being said, export demand remains a drag as it drops for a second month running.The big problem? Supply chain issues and higher prices, even if the latter is seen dropping off from the highs. S&P Global notes that:"Supply conditionsremained a challenge, however, with the Suppliers' DeliveryTimes Index still well below the level seen immediately priorto the outbreak of war in the Middle East.June signalled that vendor capacityremained stretched. That said, there were some signs ofalleviating pressures as the respective sub-index rose to athree-month high. It did, however, remain well below the levelseen prior to the outbreak of the Middle East war.Nevertheless, eurozone manufacturers were able to keep ontop of workloads. In fact, they even managed to make inroadsinto their backlogged orders in June for a second straightmonth.A notable finding in the latest PMI survey data was regardingprices. The rate of input cost inflation, albeit still elevated,declined in June and was its softest since March. Thisfollowed on from a sustained upward climb in the underlyingsub-index that goes as far back as September last year. Asfor their own price-setting, eurozone manufacturers wereless aggressive. The rate of output charge inflation eased toa three-month low."Overall, this should afford the ECB some added flexibility in waiting out the summer before deciding on the next course of policy action. This article was written by Justin Low at investinglive.com.