Activity in the euro zone industry remained at a weak level in June. Market researcher Markit reported this on the basis of a preliminary estimate.
The purchasing managers’ index for the euro area industry was 47.8 compared to 47.7 in May. Economists generally counted on a position of 48. A level of 50 or more indicates growth, including shrinkage. The indicator for the services sector in the eurozone was 53.4 compared to 5.29 a month earlier. The composite index was 52.1 against 51.8 a month earlier.
Markit previously reported that economic activity in France picked up in May, while economic activity in Germany remained stable. German industry again contracted in June.
ING economist Bert Colijn said in a response that the continuing contraction of the Eurozone industry justifies an increased state of readiness of the European Central Bank (ECB). ECB President Mario Draghi indicated earlier this week that he would be ready with additional stimulus measures if the economy continues to weaken. Colijn states that inflation figures and the G20 summit are on the agenda next week, which could have more impact. The ECB may already take action next month, the economist says.