Eurozone: Composite PMI inches down to 17-month low
June 23, 2016
Recent data suggest that business activity in the Euro area slightly lost momentum in June. The preliminary Eurozone Composite Purchasing Managers’ Index (PMI), elaborated by Markit, inched down from 52.9 in May to 52.8 in June. The result overshot market analysts’ expectations of a starker fall to a 52.6 reading and marked the lowest reading since January 2015.
The fall in June reflected a downturn in services growth while conditions in the manufacturing sector improved. New business orders slowed in the services sector, however, picked-up in the manufacturing sector. Business expectations among service providers fell to an almost year low amid rising political and economic uncertainty.
Regarding the two largest Eurozone economies, economic conditions improved in Germany but deteriorated marginally in France. Economic conditions elsewhere in the region edged up slightly from May.