Businesses in the euro area have grown in July but confidence has weakened

Employees work on the assembly line of carbon fiber bikes in the Carbon Team factory on July 2, 2021 in Vouzela, Portugal.

Octavio Passos | . News | .

Euro zone business business expanded to its fastest month pace in over two decades in July like the loosening of more COVID-19 restrictions have given services a boost but fears of another wave of infections hit business confidence, a survey showed.

With vaccination rates in acceleration and burden on health care easing governments raised some of the curbs they have imposed to try to contain the spread of the virus, unleashing up demand.

IHS Markit’s Flash Composite Purchasing Managers Index, seen as a good economic health guide, climbed to 60.6 in July from 59.5, is highest reading since July 2000. It was ahead of the 50-mark that separates growth from the contraction and from an estimate of the Reuters poll for 60.0.

“The euro zone is experiencing a summer growth snap like loosening of restrictions for the fight against viruses in July launched growth at the fastest for 21 years old, ”said Chris Williamson, chief business economist at IHS Markit.

“The service sector in particular is to enjoy freedom of COVID-19 containment measures loosened e improved vaccination rates, in particular in relationship with hospitality, travel and tourism. “

An PMI covering the bloc’s dominant service sector jumped to 60.4 from its 58.3 highest since June 2006 in then of the forecasts of the Reuters poll for 59.5.

Indicating that pace wonnon slow down in any time soon, demand he was running. The new business the index rose to 59.7 from 58.7, one of the highest readings in the poll is 23-year history.

Meanwhile, the factories had another month of bubbles. The manufacturing PMI has only fallen since June record tall of from 63.4 to 62.6. An index measurement output fueling the composite PMI fell to 60.9 from 62.6.

But the spread of the highly transmissible Delta variant of the coronavirus has had a further impact already interrupted global supply chains and high prices for raw materials factories need soaring.

The input price index remained stable at the high of the June survey of 88.5.

Contagions and fears in increase of another wave of the coronavirus has put a dent in overall confidence. The composite future the production index collapsed to 67.8 from 71.9, the February low.

that play with European Commission data published on Thursday, which showed that consumer confidence fell this month.

Read More About Business News around the World here!


Leave a Reply