Eurozone composite PMI hits seven-month in June - IHS Markit

According to the report from IHS Markit, the pace of eurozone economic growth remained subdued in June but edged up for a second successive month to reach a seven-month high. The overall rise in activity was supported by the largest inflow of new business seen since last November, albeit remaining subdued compared to rates of order book growth seen this time last year. Employment growth meanwhile improved marginally, albeit merely running in line with the average seen in the year to date and down on the average seen last year. Looking ahead, companies continued to rein-in their expectations of growth in the coming year, which are running at their lowest since October 2014.

The IHS Markit Eurozone Composite PMI rose to 52.1 in June, up from 51.8 in May to reach its highest since last November. The reading puts growth in the second quarter up slightly on that seen in the first quarter, yet still the second-lowest since the fourth quarter of 2014.

Growth was driven by the service sector, which reported the sharpest rise in business activity since November of last year. In contrast, manufacturing remained in decline, with output falling for a fifth straight month and at a rate marginally steeper than seen in May. While the service sector’s expansion rounded off its strongest quarter since the third quarter of last year, the downturn in manufacturing completed a quarter in which production suffered the sharpest decline for six years

• Flash Eurozone Services PMI Activity Index at 53.4 (52.9 in May). 7 month high.

• Flash Eurozone Manufacturing PMI at 47.8 (47.7 in May). 2-month high.