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Eurozone business activity still muted in July, retail sales flat

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By Euronews
Eurozone business activity still muted in July, retail sales flat

<p>Business activity in the eurozone expanded at a slightly better than predicted pace in July. </p> <p>Surveys of companies’ bosses for the Purchasing Managers’ Index (<span class="caps">PMI</span>) compiled by Markit found they have so far largely shrugged off Britain’s vote in late June to quit the European Union.</p> <p>“A welcome uptick in the final <span class="caps">PMI</span> numbers… is especially encouraging as it suggests the region saw little overall contagion from the UK’s ‘Brexit’ vote,” said Chris Williamson, Markit’s chief economist.</p> <p>However growth remained muted and what there was came mostly from a surge in Germany.</p> <p>There was continued stagnation in France and output slowed in the next two largest economies – Italy and Spain.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Upward revision means the euro-zone <span class="caps">PMI</span> actually increased after Brexit vote – but it still points to low <span class="caps">GDP</span> growth <a href="https://t.co/Dgnm0tvU9u">pic.twitter.com/Dgnm0tvU9u</a></p>— Capital Economics (@CapEconEurope) <a href="https://twitter.com/CapEconEurope/status/760750142203039744">August 3, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>Markit’s Williamson noted: “The survey is still indicating only a modest 0.3 percent quarterly rate of economic growth at the start of the third quarter. Such a meagre pace of expansion will inevitably fuel speculation about what the European Central Bank could and should do to boost growth, and when.”</p> <p>Growth in the region’s dominant service industry also ticked up from June and firms in that sector hired new staff at the fastest rate since early 2008. </p> <p>At the same time we learned that retail sales in the eurozone were little changed in June compared to the previous month.</p> <p>The halt in retail sales growth in June came after the year’s highest monthly rise in May, when consumers spent 0.4 percent more than in the previous month.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Euro area retail trade stable in June 16 over May 16, +1.6% over June 15 <a href="https://twitter.com/hashtag/Eurostat?src=hash">#Eurostat</a> <a href="https://t.co/DcPGzpbt1E">https://t.co/DcPGzpbt1E</a> <a href="https://t.co/NQPvhMJfK5">pic.twitter.com/NQPvhMJfK5</a></p>— EU_Eurostat (@EU_Eurostat) <a href="https://twitter.com/EU_Eurostat/status/760763890183573504">August 3, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>June sales were up by 1.6 percent from the same month last year.</p> <p>Consumers increased their spending on non-food products but spend less on fuel. </p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Euro zone retail sales flat in June, as consumers cut fuel purchases <a href="https://t.co/dtYCR1N8aP">https://t.co/dtYCR1N8aP</a> via <a href="https://twitter.com/Reuters"><code>Reuters</a></p>&mdash; Peter Jalkotzy (</code>Tahoe58) <a href="https://twitter.com/Tahoe58/status/760830544586248193">August 3, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>