[BRUSSELS] Business activity in the eurozone increased for a seventh consecutive month in July, with the pace of expansion hitting an 11-month high, a closely watched survey showed on Thursday (Jul 24).
The HCOB Flash Eurozone purchasing managers’ index (PMI) published by S&P Global registered a figure of 51.0 this month up from 50.6 in June.
Any reading above 50 indicates growth, while a figure below 50 shows contraction.
Although still modest, the pace of growth quickened for the second consecutive month and was the sharpest since August last year, the survey said.
“The eurozone economy appears to be gradually regaining momentum,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
“The recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July,” he added.
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The overall increase in output reflected growth across both manufacturing and services, with the latter posting the stronger pace of growth in four months, the report said.
Germany, a key driver of Europe’s economy, showed encouraging signs of recovery, recording a marginal increase in output for the second month running.
Business activity in France instead decreased again but at the slowest pace in almost a year.
“Manufacturing output has expanded cautiously for five months in a row. Germany is playing a key role here and, together with other countries, has been able to more than offset the weakness in France,” said de la Rubia.
“However, for the manufacturing sector in the eurozone to return to solid growth in the long term, French industry must also regain its footing.” AFP
