-Chris Williamson, Markit
An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the euro-zone services sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May. A level below 50.0 signals a deterioration from the previous month, while above 50.0 signals an increase. Among major euro area countries, France was once again the weakest performer, with PMIs pointing to a contraction in economic output. Indicators for Germany, Italy and Spain pointed to solid expansion. Data overall signaled a continued pick-up in employment, with job growth accelerating to a five-year high.
Meanwhile, a separate report from Eurostat showed that retail sales in the euro zone came in the green both on the monthly and annual basis in May, after the flat reading seen a month before. Retail sales rose by 0.4% in May, after a 0.2% increase in April. This brought the annual rate of increase up from 1.4% to 1.6% in May.
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