Eurozone downturn hits seventh consecutive quarter

The Eurozone's orders have suffered their seventh consecutive quarter of contraction, according to new data released by Markit (release). Despite this, political chaos in Portugal is likely to dominate today.

Chris Williamson, chief economist at Markit said:

The survey is broadly consistent with GDP falling by 0.2% in the second quarter, similar to the decline seen in the first three months of the year.

June saw the currency bloc's orders expand less than expected, with a composite purchasing manager's index (PMI) rise from 47.7 to 48.7 (48.9 expected, and any number below 50 implies contraction).

The services sector saw PMI grow from 47.2 to 48.3. Economists had anticipated a rise to 48.6. While Germany returned to growth with a PMI of 50.4, both it and Italy failed to meet analyst expectations.

We saw a strong data beat for Spain earlier, now seeing services growth at its highest level since July 2011, and France also peformed better than expected, with a PMI of 47.2.

Spain: 47.8 (47.3 previous, 47.5 expected)
Italy: 45.8 (46.5 previous, 47.0 expected)
France: 47.2 (44.3 previous, 46.5 expected)
Germany: 50.4 (49.7 previous, 51.3 expected)

On Monday, Eurozone manufacturing as a whole saw its best outlook since March 2012.