"The big concern is once again the divergent trends within the eurozone"
-Chris Williamson, Markit chief economist
The Eurozone recovery is losing momentum as economic activity in the region slowed for a second consecutive month falling to the lowest rate in six months, a survey showed. Nevertheless, the single currency held steady versus the U.S. Dollar despite poor fundamentals. The Euro bought $1.3597 in Asian midday trade versus $1.3601 in New York Monday afternoon. The Markit Composite Purchasing Managers' Index for the Eurozone, which measures business activity across manufacturing and services sectors, declined to 52.8 from 53.5 seen last month. The results also indicated an uneven growth across the Euro area, with robust activity in Germany and worsening slowdown in France. The German economy is expected to expand by 0.7% in Q2 in contrast to France, where an economic downturn continues. Markit said that its composite PMI for France dropped to 48.0 down from 49.3 in May, with a figure below the 50-mark threshold indicating a slowdown in business activity.
However, outside Germany and France, the recovery is seen to have gathered some steam in the second quarter, with Markit surveys pointing to the most rapid expansion since August 2007 and potation pickup in the coming quarters, as new orders climbed to the highest level since May 2011.
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