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- Eurozone’s private sector improves noticeably in June
Eurozone’s private sector improves noticeably in June
The report from
IHS Markit revealed on Friday that activity in Eurozone’s services sector
continued to recover ground from April’s record low during June.
According to
the report, the IHS Markit Eurozone PMI Services Business Activity Index came
in at 48.3 in June, up from 30.5 in May. This was the highest reading since February,
but remained below the 50.0-nochange mark, indicating that the business environment
for service providers continued to be challenging. Economists had forecast the
indicator to increase to 47.3 in June.
Employment fell
for the fourth month in a row, albeit at a slower rate than in May. The levels of
work outstanding also continued to decline, albeit at a softer pace. Meantime,
levels of incoming new business
followed a similar trend to activity as demand struggled to gain meaningful
traction despite the easing of lockdown restrictions across the region.
The IHS Markit
Eurozone PMI Composite Output Index surged to 48.5 in June from 31.9 in the
previous month, pointing to the softest contraction in private sector activity
in four months. Economists
had expected the index to increase to 47.5 in June.
The country-level
data for June revealed that all countries enjoyed their best Composite PMI
readings since February. Of note, growth was seen in France, which was the
best-performing country overall. Spain
moved close to stabilization, but activity continued to fall at solid rates in
Italy and Germany. Ireland was the worst-performing nation.
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