The decline in the eurozone continued to recover in June, according to data on Tuesday, which provides the latest data on the economic condition of the region since the coronavirus pandemic.
Flash data on the Purchasing Manager Index (PMI), which measures activity both in the services sector and in the manufacturing sector in the eurozone, in June was 47.5 against the final value of 31.9 in May. A 50-point mark separates compression from expansion. Economists surveyed by Reuters expected a sudden PMI in June to reach 42.4.
15.6 points growth was the largest in the history of research, with the exception of a record increase in May, the IHS Markit said.
“The latest increase brought PMI to its highest level since February, although it still indicated a general decline in production volumes. Output again declined in both manufacturing and services, with the latter showing slightly sharper declines. However, both sectors reported a noticeable slowdown. reduction for the second consecutive month, “he said.
IHS Markit added that the ongoing decline in production was due to the fourth consecutive monthly decline in new business inflows, “which, in turn, contributed to a further sharp reduction in the number of unfinished orders for companies.” However, in June, these factors continued to soften, indicating a further improvement in the next month.
IHS Markit chief economist Chris Williamson said the data “points to another significant easing in the region’s decline in June.”
“Production and demand are still falling, but no longer falling,” he continued. “Although second-quarter GDP is likely to continue to fall at an unprecedented rate, PMI growth adds to the expectation that lifting blocking restrictions will help put an end to the recession as we approach summer.”
These data provide markets with another indicator of the extent to which eurozone countries are recovering from locks across the region that have actually closed entire industries.
Single currency business activity hit a three-month high in May with the final composite PMI (which includes both manufacturing and services) down 31.9 from 13.6 in April,
Tuesday’s data is based on other signs of the region’s economic well-being or not. On Monday, fast consumer confidence data for the eurozone and the EU as a whole showed further improvement in June. However, recent unemployment data has given a worrying picture, especially for young people.