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- Eurozone’s services sector improves slightly more than initially estimated in June
Eurozone’s services sector improves slightly more than initially estimated in June
The
report from IHS Markit revealed on Monday that activity in Eurozone’s services
sector grew at the fastest pace in nearly 14 years in June.
According
to the report, the IHS Markit Eurozone PMI Services Business Activity Index
came in at 58.3 in June, up from 55.2 in May and a flash estimate of 58.0. This
was the highest reading since July 2007. Economists had forecast the indicator
to stay unrevised at 58.0.
According
to the report, the general easing of COVID-19 restrictions helped to support
market activity, which, in turn, resulted in a noticeable and accelerated increase
in new business volumes. Growth in new work was the strongest recorded by the
survey since July 2007. Elsewhere, employment in the service sector rose at the quickest pace since
October 2018. Capacity, however, came under significant pressure as evidenced
by an advance in backlogs of work outstanding for the third month in
succession. The net gain was the sharpest recorded since May 2000 and
encouraged firms to take on additional staff. On the price front, input costs
rose at the strongest rate since July 2008, while output charges were raised in
response to the greatest degree since October 2000.
Meanwhile,
the IHS Markit Eurozone PMI Composite Output Index increased to 59.5 in June from
57.2 in the previous month, being revised slightly up from the flesh estimate of
59.2. The latest reading pointed to the fastest rate of expansion in private
sector activity since June 2006.
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