Don't miss

Replay


LATEST SHOWS

FRANCE IN FOCUS

French presidential election: Over 40% remain undecided

Read more

EYE ON AFRICA

ICC orders Congo warlord germain Katanga to pay victims

Read more

MEDIAWATCH

Trumpcare Falls Before First Hurdle

Read more

THE WORLD THIS WEEK

Westminster Attack, Abadi in Washington (part 1)

Read more

THE WORLD THIS WEEK

Obamacare, Europe's Unholy Alliances, Martin McGuinness (part 2)

Read more

INSIDE THE AMERICAS

Export bans hit Brazil amid tainted meat scandal

Read more

#TECH 24

Inside Netflix's war room

Read more

FOCUS

French Catholic voters remain faithful to scandal-hit Fillon

Read more

PEOPLE & PROFIT

Growing ambitions: The forces driving India's economy

Read more

Business Europe

New data signals Eurozone recession may be over

Text by News Wires

Latest update : 2013-07-24

A survey released today found that Eurozone businesses had returned to growth in July for the first time in 18 months. Experts say that this could be an indicator that the recession is drawing to an end.

Private business across the eurozone returned to growth in July for the first time in 18 months, a key survey indicated on Wednesday, possibly signalling an end to recession.

The Markit Eurozone Composite Purchasing Managers Index logged 50.4 points, above the 50-mark signalling growth, and a bigger-than-expected rise according to analysts after posting 48.7 points in June.

The survey, which had been in negative territory since February 2012, is closely watched as a leading indicator of activity, and economists said cautiously that this could be a sign that recession was on the wane.

The fourth monthly rise in a row overall was also marked by a two-year high logged in the manufacturing sector, which recorded 50.1 points, up from 48.8.

The rate of job losses eased, Markit said, while the feedback from star economy Germany showed rising output there at a five-month high.

Taken together, the data provides a "summer filip to policymakers," in the words of Markit chief economist Chris Williamson.

He added: "The best PMI reading for one-and-a-half years provides encouraging evidence to suggest that the euro area could -- at long last -- pull out of its recession in the third quarter."

While manufacturing led the revival, Williamson also highlighted "promising signs of stabilisation in the service sector, which hints at some much-needed upturns in domestic demand."

Services logged 49.6 points, up from 48.3.

While cautioning that there have been "false dawns" before, Ben May of London-based Capital Economics said the eurozone economy appeared to be "on the mend and might perhaps soon exit recession."

(AFP)

 

Date created : 2013-07-24

  • EUROZONE

    Eurozone unemployment hit record high in May

    Read more

  • FRANCE

    'Eurozone crisis is over,' Hollande tells Japan

    Read more

  • ECONOMY

    Eurozone jobless rate expected to hit 20 million

    Read more

COMMENT(S)