Eurozone PMI Maintains Road to Recovery

The Eurozone purchasing managers’ composite output index (PMI) maintained its recovery for the second consecutive month, recording 48.5 in June, rising by 17 points compared to its level in May at 31.9.

This is the best level for the Eurozone index in four months, since the beginning of the coronavirus disease (COVID-19) outbreak.

The index also exceeded its earlier flash reading of 47.5, according to a report by IHS Markit on Friday.

However, data shows that the manufacturing output and service sector activity continued to fall in the Eurozone, as the indices remain below the 50-point mark, thus reflecting contraction, despite the improvement compared with previous months.

Moreover, private sector companies in the Eurozone continued to cut staffing levels during June.

The IHS Markit report revealed that the Eurozone PMI Services Business Activity Index continued to recover ground from April’s record low, as it rose in June to 48.3, up from 30.5 in May.

Meanwhile, operating expenses settled across the Eurozone last month, due to falling input prices for manufacturers, but that was offset by higher employment expenses for service providers.

“An improvement in business sentiment meanwhile adds to hopes that GDP growth will resume in the third quarter,” the report highlighted.