The eurozone’s woes continued as the debt crisis dragged the region’s manufacturing and services sector down for a fifth consecutive month in June.
The headline index of Markit’s eurozone PMI survey combining both sectors came in at 46.4 in June, where anything below 50 signals contraction.
It was higher than May’s reading of 46, but was reflective of a sharp slowdown nonetheless.
Chris Williamson, chief economist at Markit, said the eurozone experienced its strongest quarterly downturn in three years between April and June, with the survey pointing to 0.6pc contraction in the region’s economy.
“The spreading of the economic malaise from the periphery of the currency union to its core continued in June,” he said.
German output contracted at the fastest rate in three years, while activity in France also contracted, albeit at a slower pace compared with May.
New orders declined sharply, suggesting output will fall further in the coming months.
The PMI also signalled a huge drop in confidence in the private sector, triggered by “the worsening political and economic crises”.
Separate data showed retail sales in the eurozone actually increased by 0.6pc in May, beating expectations of zero growth.
Despite the rise, economists said a 1.4pc drop in April suggested retail sales fell in the second quarter of the year overall.
telegraph.co.uk
The headline index of Markit’s eurozone PMI survey combining both sectors came in at 46.4 in June, where anything below 50 signals contraction.
It was higher than May’s reading of 46, but was reflective of a sharp slowdown nonetheless.
Chris Williamson, chief economist at Markit, said the eurozone experienced its strongest quarterly downturn in three years between April and June, with the survey pointing to 0.6pc contraction in the region’s economy.
“The spreading of the economic malaise from the periphery of the currency union to its core continued in June,” he said.
German output contracted at the fastest rate in three years, while activity in France also contracted, albeit at a slower pace compared with May.
New orders declined sharply, suggesting output will fall further in the coming months.
The PMI also signalled a huge drop in confidence in the private sector, triggered by “the worsening political and economic crises”.
Separate data showed retail sales in the eurozone actually increased by 0.6pc in May, beating expectations of zero growth.
Despite the rise, economists said a 1.4pc drop in April suggested retail sales fell in the second quarter of the year overall.
telegraph.co.uk
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