The Eurozone's industrial growth slowed for a second month in June, according to a series of business surveys which suggested the currency union was still expanding only at a weak pace.
Markit’s manufacturing purchasing managers’ index (PMI) released yesterday came in at just 51.8 in June, the lowest of 2014 so far. New business inflows increased more slowly than in any month since last October
Spain over-performed the rest of the bloc with a score of 54.6, the highest in seven years. Italian and German factories are also growing, though at slower paces.
In comparison, the Greek and French manufacturing sectors recorded contraction, with figures of 49.4 and 48.2 respectively. Across the euro area, manufacturing employment has now been rising at a slow pace to half a year, but Greek and French manufacturers cut staff numbers again.
Separate figures released yesterday showed the scale of the region’s challenge, with unemployment holding steady at 11.6 per cent in May. The share of people out of work fell from 12 per cent in May last year, but remains much higher than just before the financial crisis, when the rate dropped to below 7.5 per cent.