Investing.com - Manufacturing activity in the euro zone improved more-than-expected in June, but remained in contraction territory for the 23rd consecutive month, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 48.7 in June from a final reading of 48.3 in May.
Analysts had expected the index to inch up to 48.6 in June.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone improved to a 15-month high in June, but remained deep in contraction territory.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 48.6 from 47.2 in May, above expectations for an increase to 47.5.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The survey data suggest that GDP is likely to have shrunk by 0.2% in the second quarter, similar to the fall seen in the first three months of the year and extending the region’s recession into a record seventh successive quarter.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.54% to trade at 1.3223.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.8%, France’s CAC 40 plunged 1.8%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 48.7 in June from a final reading of 48.3 in May.
Analysts had expected the index to inch up to 48.6 in June.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone improved to a 15-month high in June, but remained deep in contraction territory.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 48.6 from 47.2 in May, above expectations for an increase to 47.5.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The survey data suggest that GDP is likely to have shrunk by 0.2% in the second quarter, similar to the fall seen in the first three months of the year and extending the region’s recession into a record seventh successive quarter.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.54% to trade at 1.3223.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.8%, France’s CAC 40 plunged 1.8%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2%.