As I’ve been covering over the last few months the data coming out of Europe of late has been slowly getting better, and last nights’ PMI continued the trend.
Eurozone stabilises as PMI hits one-and-a-half year high
Flash Eurozone PMI Composite Output Index at 50.4 (48.7 in June).18-month high.
Flash Eurozone Services PMI Activity Index at 49.6 (48.3 in June). 18-month high.
Flash Eurozone Manufacturing PMI at 50.1 (48.8 in June). 24-month high.
Flash Eurozone Manufacturing PMI Output Index at 52.3 (49.8 in June). 25-month high.
The Markit Eurozone PMI Composite Output Index rose above the 50.0 no-change level in July for the first time since January 2012, according to the flash estimate. The PMI rose for the fourth successive month, up from 48.7 in June to 50.4.
Manufacturers reported the largest monthly increase in output since June 2011, registering an expansion for the first time since February of last year. Service sector activity meanwhile fell only marginally, recording the smallest decline in the current 18-month sequence and showing signs of stabilising after the marked rates of decline seen earlier in the year.
New orders fell only marginally during the month, registering the smallest decline since August 2011. The rate of loss of new orders has now eased for four straight months, helping the rate of decline in backlogs of work ease to the slowest for nearly two years in July.
New orders for manufactured goods rose for the first time since May 2011, buoyed by a slight increase in new export orders. Incoming new business in the service sector meanwhile continued to decline, although the drop was the smallest seen since March of last year.
The easing in the rate of loss of new business was a factor helping drive expectations for service sector business growth in the year ahead to the highest since April.
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By country, output rose at the fastest rate for five months in Germany. Service sector growth hit a five-month high while manufacturers reported the steepest monthly increase in output since February of last year. Overall job creation hit the highest since March.