Eurozone June PMI Shows Slower Contraction in Private Sector, Services Remain Weak

Golden Ten Data reported on June 23 that the Eurozone's private sector shrank for the third consecutive month in June, but the pace of contraction slowed. A slight rebound in tourism and leisure demand failed to fully offset the ongoing decline in new orders. S&P Global's preliminary Eurozone Composite PMI for June rose from 48.5 in May to 49.5, hitting a three-month high. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated: "The Eurozone economy is showing enough resilience to almost avoid falling into recession." He pointed out, "June's preliminary PMI indicates only a slight drop in business activity, which suggests that the survey points to GDP remaining broadly flat in the second quarter." A survey released by Reuters in early June predicted GDP growth of 0.1% this quarter. New orders fell for the fourth consecutive month in June, though the decline slowed. Manufacturing new orders saw a slight rebound, but demand in the services sector continued to decrease.