Eurozone flash manufacturing PMI steadies at 55.5 in June

The Eurozone economy maintained its pace of growth in the month of June, the latest manufacturing and services activity surveys from IHS/Markit research showed.

The Eurozone manufacturing purchasing managers index (PMI) remained unchanged at 55.5 in June while services PMI rebounded to 55.0 versus 53.8 last.

The IHS Markit Eurozone PMI improved from 54.1 in May to 54.8 in June, hitting fresh 2-month highs.

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

“An improved service sector performance helped offset an increasing drag from the manufacturing sector in June, lifting Eurozone growth off the 18- month low seen in May. With growth kicking higher in June, the surveys are commensurate with GDP rising 0.5% in the second quarter.”

“Price pressures are also on the rise again, running close to seven-year highs. Increased oil and raw material prices are driving up costs, but wages are also lifting higher, in part reflecting tighter labour markets in some parts of the region. Service sector jobs are being created at the fastest rate seen over the past decade, underscoring the extent to which the job market is tightening.”