In contrast to the strong data releases in previous months, June PMIs unexpectedly declined, with the composite indicator falling to 50.8 from 52.5 in May, below expectations of 52.5, analysts at Danske Bank.
The Eurozone economy will continue to grow
“Despite the decline, the composite PMI was significantly higher in the second quarter compared to the first quarter, indicating that the economy also grew in the second quarter. Therefore, We expect the economy to continue to grow, driven by a strong services sector, a resilient labor market and rising real incomes..”
“Headline inflation in June eased to 2.5% y/y from 2.6% y/y due to lower energy and food inflation, while core inflation remained persistent at 2.9% y/y. Breaking down the figure reveals a continued strong momentum in services inflation. Similar to the picture seen lately, the underlying momentum of inflation – especially services inflation – remains too high for the ECB’s comfort.”
“In the French elections, we believe the most likely outcome is that no party will win an absolute majority, resulting in a ‘hung parliament’ and political stalemate. Therefore, France’s public spending, which has been in the spotlight in recent weeks, is not set to increase noticeably.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
