 "Euro zone business growth picks up")
Euro zone business activity expanded a touch faster than thought last month, with the region appearing to have so far largely shrugged off Britain's vote in late June to quit the European Union, a survey found.
But growth remained muted and was led by a surge in Germany, which masked a continued stagnation in France and a slowing pace in Spain and Italy. Markit's final composite Purchasing Managers' Index for the euro zone, released on Wednesday, was 53.2 in July, above a flash estimate of 52.9 and June's 53.1. It has been above the 50 mark that divides growth from contraction since mid-2013. Of some relief to policymakers, a sub-index measuring output prices jumped to a 10-month high of 49.8 from June's 49.1, an indication firms barely cut prices. But inflation is nowhere near the central bank's 2 per cent target ceiling.
Growth in the bloc's dominant service industry also ticked up from June. The PMI edged up to 52.9 from 52.8, higher than the flash 52.7 reading.
In a sign service firms expect a further improvement this month, they increased headcount at the fastest rate since early 2008. The employment index rose to 53.7 from 53.1.
“The improved hiring trend suggests firms have gained sufficient confidence in the durability and sustainability of the upturn to expand capacity in increasing numbers,” Williamson said.
But growth remained muted and was led by a surge in Germany, which masked a continued stagnation in France and a slowing pace in Spain and Italy. Markit's final composite Purchasing Managers' Index for the euro zone, released on Wednesday, was 53.2 in July, above a flash estimate of 52.9 and June's 53.1. It has been above the 50 mark that divides growth from contraction since mid-2013. Of some relief to policymakers, a sub-index measuring output prices jumped to a 10-month high of 49.8 from June's 49.1, an indication firms barely cut prices. But inflation is nowhere near the central bank's 2 per cent target ceiling.
Growth in the bloc's dominant service industry also ticked up from June. The PMI edged up to 52.9 from 52.8, higher than the flash 52.7 reading.
In a sign service firms expect a further improvement this month, they increased headcount at the fastest rate since early 2008. The employment index rose to 53.7 from 53.1.
“The improved hiring trend suggests firms have gained sufficient confidence in the durability and sustainability of the upturn to expand capacity in increasing numbers,” Williamson said.