Eurozone manufacturing PMI declines slightly in July

The pace of economic growth in the Eurozone slowed slightly in July, data released on Friday showed.

The Markit Eurozone Purchasing Managers’ Index declined from 54.2 in June to 53.7, the sixth-highest reading since mid-2011, but remained slightly above the average registered in the first six months of 2015.

However, the figure represented a two-month low and was slightly lower than the 54.0 reading analysts had expected.

Growth declined marginally in the manufacturing and services sectors, falling 0.3 to 52.5 in the former and 0.6 to 53.8 in the latter.

Germany reported a two-month low in growth, while France fared slightly worse, as the rate of growth fell to its lowest level for three months to 51.5.

“Eurozone economic growth lost only slight momentum in July amid the rollercoaster events of the Greek debt crisis during the month,” said Markit’s chief economist Chris Williamson.

“The rate of expansion remained reassuringly robust to suggest that it was by-and-large ‘business as usual’ for the region as a whole.”

However, other analysts suggested July’s fall in the Eurozone composite PMI supported the view that the fragile recovery will slow in the second half of the year.

“Further falls in August and September seem quite possible and would point to weaker growth,” said Jennifer McKeown, senior European economist at Capital Economics.

“July’s decline reflected falls in the manufacturing and service sector indices and follows yesterday’s disappointing drop in euro-zone consumer confidence.”