- Markit economics
Factory output in the struggling Eurozone improved to a 16-month high last month, fuelling expectations the economy is stabilizing and soon will start to gain the momentum. According to the London-based Markit Economics, a measure of manufacturing activity in the 17-nation economy, which are having Euro in circulation, inched higher to 48.8 in June, up from 48.3 in the month earlier, above an initial estimate of 48.7 made on June 20. Nevertheless, the index has been in contraction territory, below 50, since July 2011. Among the notable records, Spain's 50.0 reading was the highest in three years, while activity in Italy's and Greece's manufacturing sectors saw their best scores in 23 and 24 months, respectively.
Monday's report followed an encouraging Eurozone economic confidence report for June, which showed the biggest jump since July 2010, suggesting the recession probably ended in the second quarter, as the region's economy stagnated before returning to growth during the following three-month period. Furthermore, the Eurozone seasonally adjusted jobless rate stood at 12.1% in May, up from downwardly revised 12.0% a month earlier. The lowest rates were observed in Austria and Germany, where the local statistical agencies reported unemployment rates of 4.7% and 5.3% consequently.
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