Flash eurozone PMI composite output hits 15-month high

20 June 2013 10:34  [Source: ICIS news]

LONDON (ICIS)--The flash Eurozone Purchasing Managers' Index (PMI) composite output figure hit a 15-month high in June of 48.9, improving from 47.7 in May, Markit Economics said on Thursday.

The flash eurozone manufacturing index rose to a 16-month high of 48.7, up from May's 48.3, it added.

Although the figures still indicated contraction (only PMI figures above 50.0 indicate growth), the preliminary figures indicated that the rate of eurozone economic contraction is on a moderating trend, Markit said.

“The flash PMI indicates that the eurozone contracted again in June, rounding off another weak quarter, but there are reassuring signs that the downturn is continuing to ease,” said Chris Williamson, chief economist at Markit.

The survey data suggest that eurozone GDP is likely to have shrunk by 0.2% in the second quarter, similar to the fall seen in the first three months of the year and extending the region’s recession into a record seventh successive quarter, he added.

“Encouragingly, however, the rate of contraction has eased over the course of the second quarter, with the decline in June the smallest for 15 months. At this rate, the region could stabilise in the third quarter and return to growth in the fourth quarter,” Williamson said.

“It is particularly welcome news that the rate of decline outside of France and Germany has slowed sharply in recent months, and is now the weakest for two years. The rate of contraction has also slowed sharply in France, while Germany is showing signs of faster, albeit still modest, growth,” he concluded.

Germany's flash PMI composite output for June hit a four-month high of 50.9, rising from May's 50.2, while the country's manufacturing PMI fell to 48.7 from 49.4.

France's flash PMI composite output for June rose to 46.8, rising from May's 44.6, while the country's manufacturing PMI rose to 48.3 from 46.4.

By: Will Conroy
+44 20 8652 3214

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