FXStreet (Mumbai) – Markit’s flash Eurozone PMI rose from 53.6 in May to 54.1 in June, its highest since May 2011. The manufacturing PMI beat the estimate of 52.2 to print at 52.5, while the services PMI beat the estimate of 53.6 to print at 54.4.
The growth in new orders and employment slowed in June with companies cited growing uncertainty regarding the impact of the current Greek debt crisis as a reason for the same. Average input costs rose at a weaker rate than May’s three-year high on the back of higher oil prices, wages and increased import costs. However, the uptick in average prices failed to translate into a rise in output prices, which fell at a marginal rate.
As per Chris Williamson, Chief Economist at Markit, “Despite the cloud of the Greek debt crisis hanging over the region, the Eurozone saw economic growth accelerate to a four-year high in June. The PMI is signalling GDP growth of 0.4% for the region as a whole in the second quarter. The upturn is also looking encouragingly broad-based. The German PMI continues to signal robust GDP growth, and France – the latecomer to the recovery – enjoyed its best quarter for almost four years. Outside of France and Germany, the June survey rounded off the best quarter for eight years in terms of output growth, and the best job creation since Q3 2007.”
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