The private sector growth in the Eurozone was at its highest in 4 years in June, exceeding the first estimate, according to the PMI index published by Markit Economics on Friday. The composite PMI index reached 54.2, against 54.1 in the first estimate, and 53.6 in May. When the index exceeds 50, the economy is progressing, whereas if it is lower it means the economy is receding.
“In spite of the Greek crisis in the second half of June, the final PMI index slightly exceeds its flash estimate, which implies that the current troubles have had limited impact on the real economy so far,” notes Chris Williamson, chief economist at Markit, in a press release.
According to him, “it is reassuring to see that job creation is strong, staff growth being at its highest level in 4 years, in the past 2 months.”
This trend “implies that the cyclical recovery in the Euro zone is not threatened for now, in spite of the Greek crisis, and also in spite of a weaker stimulus package because of the strengthening of the euro, oil prices, and bond yields, after the troughs seen at the beginning of 2015,” notes for his part Howard Archer, from IHS Global Insight. Therefore, he foresees a growth rate of at least 1.5% in the Euro zone this year, against 0.9% in 2014.
Of the countries investigated, Ireland remains top of the class with an index of 60.9, its highest level in 6 months. Spain stays in second place (55.8), although this is its weakest performance in 6 months, and growth rates are on the up in Germany, Italy, and France. In Germany the index reaches 53.7, its best result in 2 months. In Italy it reaches a yearly high of 54.0.
And even though France comes last in the rankings with 53.3, it is registering “strong growth” according to Chris Williamson, achieving its best performance in 46 months.
Lars Andersen (Source: Belga)