Preliminary June services PMI 52.6 vs 53.2 in May (Il Sole 24 Ore Radiocor) - London , 21 Jun - In June, the eurozone's purchasing managers' index for the manufacturing sector fell to a six-month low of 45.6 from 47.3 in May while that for the services sector was at a three-month low of 52.6, down from 53.2 the earlier month, according to data released by S&P Global along with Hamburg Commercial Bank (HBOC).

The manufacturing output index fell to a six-month low of 46.0 from 49.3 in May while the composite output index, a weighted average of services PMI and manufacturing output, was at a three-month low of 50.8, down from 52.2 the earlier month.

A reading above 50 signals expanding sector activity, while one below a contraction.

'Is the recovery in the manufacturing sector ending before it began? Both we and the market consensus anticipated that the increase in the index in May would be followed by another rise in June, potentially setting the stage for an upward trend. However, rather than moving closer to expansionary territory, the HCOB Flash Eurozone Manufacturing PMI reading fell, dashing hopes for a recovery. This setback was compounded by the fact that new orders, which typically serve as a good indicator of near-term activity, fell at a much faster rate than in May. This rapid decline in new orders suggests that a recovery may be further off than initially expected," commented Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

'The services sector continues to keep the Eurozone afloat.

Even though activity didn't pick up as much as last month and fell short of what most analysts were expecting, the overall expansion was solid. Parallel to the softer activity figures, service providers were a bit more reserved when it came to increasing their staffing levels. Using the preliminary HCOB Flash Eurozone Composite Output Index in a simple regression analysis, the GDP estimate for the second quarter indicates a slight downgrade but still points to positive growth of 0.2% compared to the first quarter.".

AAA-Hob

(RADIOCOR) 21-06-24 10:12:08 (0241) 5 NNNN