New data released this morning has seen Eurozone outlook improve in June, as purchasing managers' index figures from Markit show outlook improve from 47.7 to 48.9, versus analyst expectations of a rise to 48.1 (a number below 50 implies the area is still contracting).
To break that down, the manufacturing sector rose from 48.3 to 48.7 (48.6 expected) and services from 47.2 to (47.5 expected). So while both sectors are still contracting, the pace of that contraction has slowed.
At this rate of PMI improvement, the eurozone cld stabilise in Q3 & return to growth in Q4. No ECB action imminent http://t.co/RatEmzMG8r— Chris Williamson (@WilliamsonChris) June 20, 2013
French results have been good, as the manufacturing sector rose from 46.4 to 48.3 (47.0 expected) and services from 44.3 to 46.5 (44.8 expected). Again, both sectors in contraction here.
German PMIs have been a mixed bag, with manufacturing worsening, dropping from 49.4 to 48.7 (a rise to 49.8 expected). The services sector has begun to expand again however, rising from 49.7 to 51.3 (50.0 expected).