Eurozone factory growth picked up slightly last month but remained tepid as uncertainty around Greek debt talks – and the country’s possible exit from the bloc – swept across the region, a survey found yesterday.
Fears of further Greek turmoil, and a possible exit from the euro, kept Markit’s final Eurozone manufacturing purchasing managers’ index (PMI) in check. It nudged up to a 14-month high of 52.5 last month from May’s 52.2, in line with a preliminary reading published before the fears intensified.
Any reading above 50 indicates growth and an index measuring output that feeds into the composite PMI, due on Friday and seen as a good guide to growth, came in at 53.6, just above the flash 53.5 and May’s 53.3.
“The overall pace of expansion remains insipid rather than impressive,” said Chris Williamson, Markit’s chief economist.
Further expansion was also curtailed by lacklustre growth in Germany and France and Markit said manufacturing provided only a modest boost to the wider economy.
Despite weak growth and demand, factories raised prices at the fastest rate since late 2013. The output price index rose to 51 from 50.