European PMI Rises to 54.1 in June

The eurozone’s economic recovery is continuing, a survey has suggested, with business output growing at its fastest rate in four years in June.

The CIPS/Markit composite purchasing managers’ index (PMI) rose to 54.1, compared with 53.6 a month earlier – its highest reading in 49 months.

A reading above 50 indicates growth, while a reading below 50 suggests a fall in activity.
Markit said the services sector had seen its best quarter for four years.

In addition, factories enjoyed their best quarter of production growth for a year, “highlighting the broad-based nature of the upturn”.

Employment and new orders also rose at their strongest rates for four years in the second quarter.
“Despite the cloud of the Greek debt crisis hanging over the region, the eurozone saw economic growth accelerate to a four-year high in June,” said Chris Williamson, chief economist at Markit.

“The PMI is signalling GDP growth of 0.4% for the region as a whole in the second quarter.”
The eurozone’s gross domestic product (GDP) rose by 0.4% in the first quarter, according to official figures.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza