| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy

Finfacts changes from 2015


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate




Content Management by interactivetools.com.

News : EU Economy Last Updated: Jun 24, 2015 - 7:52 AM

Euro Area manufacturing/ services PMI hits four-year high in June
By Michael Hennigan, Finfacts founder and editor
Jun 23, 2015 - 9:03 AM

Email this article
 Printer friendly page

Euro Area economic growth hit a four-year high in June, according to the latest PMI (purchasing managers' index) survey data for manufacturing and services activity. Markit’s flash Eurozone PMI, based on around 85% of usual monthly survey replies, rose from 53.6 in May to 54.1 in June, its highest since May 2011.

The upturn in June also took the average PMI reading for the second quarter as a whole to the highest for four years. Growth picked up speed in both services and manufacturing at the end of the second quarter. The improved performance rounded off the best quarter for four years in the service sector while factories enjoyed their best quarter of production growth for a year, highlighting the broad-based nature of the upturn.

The survey also indicated that employment and new orders had likewise risen at the strongest rates for four years over the second quarter as a whole, although growth slowed in both cases in June.

In the case of new orders, growth has now slowed for three successive months, easing in both services and manufacturing, with the latter also recording a slowdown in growth of exports. Expectations of future growth in the service sector also slipped, dropping to a six-month low. Slower order book growth and reduced optimism about the year ahead were largely attributable to an increase in the number of companies citing growing uncertainty regarding the impact of the current Greek debt crisis.

By country, growth accelerated in both Germany and France, although the former saw a weaker rate of expansion over the second quarter as a whole compared with the first quarter.

France saw weaker growth than Germany, but the PMI nevertheless hit its highest since August 2011, ending the best quarter that France has seen since the third quarter of 2011. New order growth also accelerated in France to reach the fastest since August 2011 and employment increased for a fourth successive month, with the rate of job creation the second-highest since December 2011. Elsewhere in the region, growth slowed for a second successive month, but still outpaced that seen in both France and Germany.

Over the second quarter as a whole, the region excluding France and Germany enjoyed its best performance for eight years. Growth of new orders and employment likewise slowed in June outside of the two ‘core’ euro nations, but encouragingly the overall rise in employment during the second quarter was still the best seen since the third quarter of 2007.

Chris Williamson, chief economist at Markit said: “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. The PMI is signalling GDP growth of 0.4% for the region as a whole in the second quarter. The upturn is also looking encouragingly broad-based.

"The German PMI continues to signal robust GDP growth, and France – the latecomer to the recovery – enjoyed its best quarter for almost four years. Outside of France and Germany, the June survey rounded off the best quarter for eight years in terms of output growth, and the best job creation since the third quarter of 2007.

“The second quarter upturn signalled by the PMI puts the region on course to expand by around 2.0% this year, though much of course depends on the outcome of the Greek debt negotiations and any resulting impact on growth in the second half of the year.

"The uncertainty generated by the recent escalation of the crisis appears to have taken some of the steam out of hiring growth, but employment over the second quarter as a whole has nevertheless shown the largest rise for four years to suggest that – at present at least – the Eurozone economy is weathering the Greek storm relatively well.”

Related Articles

© Copyright 2015 by Finfacts.ie

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015