‘The strong jobs growth was also a reflection of ongoing elevated levels of optimism about future growth.’ — IHS Markit
Services activity in the 19-country bloc dropped unexpectedly in June, whereas manufacturing activity rose more than expected, a private survey released on Friday showed. IHS Markit reported that its preliminary PMI for the Euro zone’s services sector fell to 54.7 points in June, following the preceding month’s 56.3 and surpassing expectations for a slight decrease to 56.2. In the meantime, Markit’s PMI for the region’s manufacturing sector climbed to 57.3 points, up from the prior month’s 57.0, while analysts expected a decline to 56.9. The composite PMI, a broad gauge of economic activity across the 19-country bloc’s services and manufacturing sectors, dropped to 55.7 in June from May’s 56.8 points. Nevertheless, the Index remained well above the 50-point level separating expansion from contraction. Moreover, the survey provided additional evidence that the economy was growing at a moderate, yet stable, pace amid strong optimism over the economic outlook for the region. Apart from that, the respondents pointed to solid employment and new orders growth in the region.
