The increase in private activity in the Euro Zone reached a 4 year high in June. This increase concerns all countries in the region, despite the incertitude created by the Greek economic crisis. The composite PMI index was at 54.1 in June, compared to 53.6 in May according to the Markit cabinet, which publishes the indicator. This information was released on Tuesday. When PMI is above 50, it means that activity is progressing, while it is falling if it is below this figure.
“Despite the Greek debt crisis threatening the region, economic growth is accelerating in the euro zone”, says a press release by Chris Williamson, the Markit’s head of economics.
The PMI index is in line with the Euro zone’s Gross Domestic Product (GDP) of 0.4% for the second trimester, which should allow the Euro zone economy to grow by 2% this year, “even though predictions largely rest on the issue of negotiations around the Greek debt, and their eventual effect on growth in the second trimester”.