Eurozone flash manufacturing PMI arrives at 47.8 in June, EUR/USD keeps 1.1300

The Eurozone manufacturing sector activity continued to improve in the month of June, the latest manufacturing activity survey from IHS/Markit research showed.

The Eurozone manufacturing purchasing managers index (PMI) came in at 2-month highs of 47.8 in June vs. 48.0 expected and 47.7 last while the services PMI rose sharply to 7-month highs of 53.4 vs. 52.9 expected and 52.9 last.

The IHS Markit Eurozone PMI Composite rose from 51.8 in May to 52.1 in June, hitting fresh 7-month highs.

Comments from Chris Williamson, Chief Business Economist at IHS Markit:

“The eurozone economy picked up further momentum in June, with the headline PMI rising from the lows seen earlier in the year to hint that the worst of the current slowdown may be behind us. However, the overall rate of expansion remains weak, with the survey data indicative of eurozone growth of just over 0.2% in the second quarter.”

“However, growth trends between the core and the periphery have widened. Germany and France are both showing improved performances compared to earlier in the year as one-off factors (such as the political unrest in France) continue to drop out of the picture, but the data highlight a growing concern that the rest of the region is sliding closer towards stagnation.”