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- Eurozone services PMI rose more than expected in June
Eurozone services PMI rose more than expected in June
According to the report from IHS Markit, the Eurozone PMI Services Business Activity Index remained comfortably above the 50.0 no-change mark that separates growth from contraction during June. Moreover, by rising to 53.6, from 52.9 in May, the index indicated the strongest growth of activity since October 2018. Economists had expected an increase to 53.4.
After accounting for seasonal factors, the Eurozone PMI Composite Output Index strengthened to 52.2, up from 51.8 in May (and slightly better than the earlier flash reading of 52.1). June’s PMI reading was also the highest recorded since November 2018, signalling a pick-up in economic growth of the single currency area.
Production amongst goods producers was reported to have fallen for a fifth successive month, and at a rate that was amongst the sharpest seen in the past six years. Solid growth of the eurozone economy was underpinned by a further rise in volumes of new work, the fourth in as many months. Despite being the best recorded since last November, growth in new work was modest overall. As with activity, overall gains in new work were restricted by another month of deteriorating manufacturing order books.
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