The eurozone economy is still shrinking.
The latest surveys of purchasing managers for the manufacturing and services sectors showed a slight improvement in June from the original estimate made last month.
But output in the region has now been declining for nearly a year – it was below the 50.0 mark the separates expansion from contraction for the eleventh straight month in June – and in Germany, the region’s economic powerhouse, it has been falling for four months.
The data showed the past quarter was the weakest in terms of growth for three years.
UK services data points to slump
At the same time Britain’s dominant services sector endured one of its worst months in the past three years in June despite cutting prices.
The Markit/CIPS Purchasing Managers’ Index (PMI) for services, which account for around three quarters of the country’s economic output, sank to an eight-month low despite firms cutting prices and running down existing orders.
“The services economy saw one of its worst months since the recovery began three years ago, with the June survey showing signs of growth stalling. The services PMI probably cements the case for further stimulus from the Bank of England,” said Chris Williamson, chief economist at data compiler Markit.