- Chris Williamson, chief economist at Markit
The Euro zone's manufacturing sector failed to make progress in July amid the Greek debt crisis during the month, preliminary data from Markit showed. The flash manufacturing PMI for the Euro area came in at 52.2 in July, down from 52.5 in the prior month. The German manufacturing sector faced a slight decline in the pace of growth, with the corresponding reading falling to 51.5, compared with June's final 51.9 points. At the same time, business activity in the French manufacturing sector slowed, as the PMI slid to 49.6 in the reported month, down from 50.7 reported in June and below expectations of 50.8.
Meanwhile, the Euro zone's services sector continued to enjoy a robust activity, albeit at a slightly slower pace compared to the previous month. The region's services PMI reading booked 53.8 points in July, down from 54.4 in June. The German services sector appeared to be on a slightly weaker footing in the measured month, sliding to 53.7 points, down from the 53.8 reading in June. The flash services PMI in France came in at 52.0 in July, compared to the 54.1 seen a month earlier and overshooting analysts' expectations, who had called for a 53.8 result. Consequently, the closely-watched composite PMI for the Euro area came in at 53.7 points, compared to 54.2 in June. Market watchers had expected a 54.0 result.
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