Euro area business activity slows in June, yet remains strong
Euro area business activity slowed in June, yet remained strong on the quarterly basis, the final Composite Purchasing Managers’ Index showed on Wednesday.
The Composite PMI, combining manufacturing and services activities, retreated to 56.3 in June from 56.8 in May, yet the private sector reported the best quarter since 2011.
The services gauge slipped to 55.4 last month from 56.3 a month earlier, while manufacturing PMI rose to 57.4, the highest reading since April 2011, from May’s reading of 57.0.
The current pace of business activity could the euro area to expand a robust 0.7 percent in the second quarter, said Chris Williamson, Markit’s Chief Economist.
“The dip in the PMI in June certainly doesn’t look like the start of a slowdown. Growth of new orders accelerated very slightly to reach the second- highest in just over six years, and companies are struggling to satisfy this increase in demand,” Williamson said.
As of 08:21 GMT, the
euro resumed its fall for a fifth session in a row versus the U.S. dollar, as
the EURUSD traded at 1.1354 after opening today at 1.1359.