Mike Shedlock

The Markit Flash Eurozone PMI shows Eurozone growth slows to six-month low despite strengthening periphery.

Key Points

  • Flash Eurozone PMI Composite Output Index at 52.8 (53.5 in May). 6-month low.

  • Flash Eurozone Services PMI Activity Index at 52.8 (53.2 in May). 3-month low.
  • Flash Eurozone Manufacturing PMI at 51.9 (52.2 in May). 7-month low.
  • Flash Eurozone Manufacturing PMI Output Index at 52.8 (54.3 in May). 9-month low.

Eurozone economic growth slowed for a second month running in June, easing to the weakest since December, according to the flash reading of the Markit Eurozone PMI. Growth remained robust in Germany despite weakening slightly, and France?s downturn deepened. Elsewhere across the region, however, growth was the strongest since August 2007. The headline index covering output of both manufacturing and services fell from 53.5 in May to 52.8, dropping further from April?s 35-month high. Despite the slowdown, the average PMI reading for the second quarter as a whole was the highest since the second quarter of 2011. Output has also now risen for 12 consecutive months. Output rose at identical rates in manufacturing and services, but the rates of growth slowed in both cases to nine- and three-month lows respectively. In a sign that activity may reaccelerate, the survey's measure of new orders rose to its highest since May 2011, driven by the service sector. A slowing in growth of manufacturing new orders to the weakest since October pointed to ongoing sluggish production growth in coming months, while service sector companies report ed the largest inflow of new business for three years. The service sector also saw business expectations about the year ahead improve to the second-est seen over the past three years.

French Private Sector Contracts Second Month

The Markit Flash France PMI shows French Private Sector Contracts Again in June.

Key Points

  • Flash France Composite Output Index down to 48.0 (49.3 in May), 4-month low

  • Flash France Services Activity Index falls to 48.2 (49.1 in May), 4-month low
  • Flash France Manufacturing Output Index falls to 47.1 (50.3 in May ), 6-month low
  • Flash France Manufacturing PMI drops to 47.8 (49.6 in May), 6-month low

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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