Eurozone: Composite PMI falls for second consecutive month in July
July 24, 2017
Leading data suggest that the Euro area’s growth boom eased at the start of Q3, although activity remained buoyant. The preliminary Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 55.8 in July, down from June’s 56.3 and a five-month low. The result undershot market analysts’ expectations of a rise to 57.2. Despite July’s fall, the composite PMI lies far above the 50-threshold, signaling expanding business activity.
July’s moderation reflected smaller increases of new orders, backlogs of work and employment compared with the previous month. However, overall the economy is strong and the downturn was very modest. Manufacturers reported the second-highest employment rise on record. Meanwhile, price pressures cooled in July.
Regarding the two largest Eurozone economies, slower growth was seen in France and Germany, despite robust increases in jobs. Elsewhere in the region, economic momentum gained steam, supported by an improving labor market.