Euro zone private sector activity shrank for a third straight month in \u200bJune, though at a slower pace, as a modest recovery \u200bin tourism and leisure demand failed to fully \u200coffset \u200ba sustained fall in new business, a survey showed on Tuesday. June’s reading of the S&P Global Flash Eurozone Composite PMI rose to 49.5 from 48.5 in May, a three-month high. A number below \u200c50.0 signals a contraction.<\/p>\n
“The euro zone economy is showing enough resilience to just about stay out of recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “The flash PMI registered only a slight drop in business activity in June, meaning the survey is indicative of \u200cunchanged GDP over the second quarter.” A Reuters poll published at the start of June predicted a 0.1% expansion of the economy this \u200cquarter.<\/p>\n
New orders fell for the fourth consecutive month in June but at a slower pace. A marginal recovery in manufacturing new orders was not enough to offset a continued decline in services demand. Most survey responses were collected before the U.S.-Iran ceasefire memorandum was signed on June 17.<\/p>\n
The Flash Eurozone Services PMI edged up to \u206048.9 from \u200b47.7 in May – a three-month high – but \u2060remained in contraction territory. Germany posted its sharpest drop in business activity in 18 months but France’s rate of decline eased. The rest of the euro zone as \u2060a whole recorded modest output growth. Employment fell slightly in June although the private sector has now had six straight months without adding jobs. Services staffing \u200bnudged slightly higher but manufacturing payrolls continued to shrink.<\/p>\n
On prices, input costs rose at their slowest pace since just before the \u2060outbreak of war in the Middle East in February, easing across both manufacturing and services. Output price inflation also slowed but by less than input costs. “Encouragingly, lower energy \u2060prices \u200bare already filtering through to businesses and rates of input cost and selling price inflation have moved lower in June as a result, hinting at a potential peaking of the recent price spike,” Williamson added.<\/p>\n
The European Central Bank hiked interest rates on June \u206011 as a war-related energy cost surge pushed overall inflation over 3%, well in excess of the ECB’s 2% target. The Flash Eurozone Manufacturing \u2060PMI dipped to 51.3 in \u2060June from 51.6 – a four-month low. Factory output continued to expand, supported by inventory building as clients sought to get ahead of potential future price rises and supply disruptions.<\/p>\n
Business confidence improved for a second consecutive \u200cmonth after hitting a \u200c31-month low in April but sentiment remained relatively subdued overall. <\/p>\n
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)<\/p>\n","protected":false},"excerpt":{"rendered":"Euro zone private sector activity shrank for a third straight month in \u200bJune, though at a slower pace,…\n","protected":false},"author":2,"featured_media":76826,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2480],"tags":[29849,635,603,2487,2486,2485,1453,3130,6834,4229],"class_list":["post-76825","post","type-post","status-publish","format-standard","has-post-thumbnail","category-euro-zone","tag-activity","tag-business","tag-economy","tag-euro-area","tag-euro-zone","tag-eurozone","tag-expansion","tag-gdp","tag-recession","tag-survey"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/76825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=76825"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/76825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/76826"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=76825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=76825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=76825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}