Investing.com - Manufacturing activity in the euro zone expanded at the slowest rate in seven months in June, underlining concerns over the health of the region’s economy, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index declined to a seasonally adjusted 51.9 this month, down from a final reading of 52.2 in May. Analysts had expected the index to hold steady at 52.2 in June.
Meanwhile, the preliminary services purchasing managers’ weakened to a seasonally adjusted 52.8 in June from a reading of 53.2 in May. Analysts had expected the index to ease up to 53.3 this month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “The June PMI rounded off the strongest quarter for three years, but a concern is that a second consecutive monthly fall in the index signals that the euro zone recovery is losing momentum.”
He added that, “Although the survey suggests the euro zone as a whole should grow by at least 0.4% in the second quarter, France appears to be entering a renewed downturn after GDP stagnated in the first quarter.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.07% to trade at 1.3590.
Meanwhile, European stock markets remained lower. The Euro Stoxx 50 dipped 0.8%, France’s CAC 40 declined 0.6%, London’s FTSE 100 slumped 0.45%, while Germany's DAX fell 0.85%.