Eurozone business activity slows: Markit survey
Published : 23 Jun 2017, 15:23
Eurozone private sector business activity slowed sharply in June but was still running at more than six-year highs, a closely watched survey showed Friday.
Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.
Data monitoring company IHS Markit said its June Composite Purchasing Managers Index came in at 55.7 points, the lowest reading in five months and down from 56.8 in May.
The PMI measures companies' willingness to invest in their business and so gives a good idea of how well the underlying economy is performing.
Any reading above the boom-bust 50 points line indicates the economy is expanding.
By sector, the all important services index dropped to 54.7 points in June from 56.3 in May, while manufacturing edged higher, to 58.5 points from 58.3.
Markit said that despite the headline fall in the composite PMI, the 19-nation eurozone economy posted its strongest three months to June in more than six years.
"Job creation remained one of the strongest recorded over the past decade as firms continued to expand capacity to meet rising demand," it noted.
Price pressures meanwhile eased.
IHS Markit chief business economist Chris Williamson stressed that the economy overall continued in sound health.
"Although the PMI data point to some loss of growth momentum in June, the latest reading needs to be looked at in the context of recent elevated levels," Williamson said.
"Despite the June dip, the average expansion in the second quarter has been the strongest for over six years," he said in a statement.
On that basis, IHS Markit expected the economy to grow 0.7 percent in the three months to June, up from 0.6 percent in the first quarter.
- Most viewed
- British PM’s trade envoy Rushanara in city
- Housewife gang-raped in Chattogram
- 22 July Events
- 22 July Births
- 22 July Deaths
- Want to work for people until death: Prime Minister
- Rabindra-Nazrul Jayanti celebrated in London
- People stream to Suhrawardy Udyan for Hasina's reception
- Temperature may fall by (1-2)°C over country
- ‘We’re on top of the world anyways’: Croatia’s president
- AL to hold mass reception to Prime Minister today
- Use jute bags, break up with plastics: Prime Minister
- France crowned World Cup 2018 champions after beating Croatia
- Bangladeshi Sharmin wins Commonwealth recognition
- HSC, equivalent exams results tomorrow
- 'I had to make my kidnapper fall in love with me': Chloe Ayling
- Sonam Kapoor's Truly 'The Good Wife'
- Google faces record 4.3-bn-euro EU fine over Android