July final manufacturing PMI 51.9 vs 52.0 prelimPrior 51.4Euro area manufacturing activity recovers to a three-month high, largely underpinned by Germany. Overall demand conditions in the region remain fragile at best but at least there is slight evidence of a rise in new orders.The manufacturing output index was the more impressive number here, rising to 52.9 - a 52-month high. The quickerexpansion was underpinned by the completion of backloggedorders alongside a slight pick-up in sales.That being said, supply chain pressuresnevertheless remained intense, although they were the leastpronounced in five months. Adding to that as well is that inflation pressures also eased in July.S&P Global notes that:"Eurozone factories are enjoying something of a summergrowth spurt, with production rising at its fastest rate forfour and a half years. However, there are signs that thisgood news may prove short-lived, with momentum at riskof fading as autumn approaches."Germany, the Netherlands, Austria and Greece arereporting robust production growth, but output is fallingin France and Spain, while Italy is seeing only a modestgain. These divergences underscore how large parts ofthe region continue to struggle amid weak demand, highprices and supply delays."Although supply bottlenecks and energy-linked pricepressures eased slightly in the July survey period, supplychain stress and energy prices remain elevated amidongoing tensions in the Middle East, threatening toconstrain production and further dampen demand in thecoming months."New work inflows therefore remain worryingly weak,meaning producers are having to rely on orders placed inprior months to drive the latest increase in production.As a result, factories continue to reduce headcountsamid concerns over a potential lack of work in the comingmonths, highlighting that the manufacturing economyis not quite as healthy as the headline numbers mightsuggest." This article was written by Justin Low at investinglive.com.