The monthly index stands at 54.8 points in July, up from 48.5 in June, thanks to coronary virus-related “relaxation measures”.
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Growth in private activity in the euro zone rose in July, for the first time since February, even reaching its highest level in two years, according to the first estimate on Friday of the composite PMI index by the firm Markit.
The monthly index stands at 54.8 points in July, up from 48.5 in June, thanks to coronary virus-related “relaxation measures”.
When the PMI is above 50 points, it means that the activity is progressing, while it retreats if it is below this threshold.
“The improvement in the economy has partly reflected a technical rebound in activity after the recent period of containment in the various countries of the region, with a growing number of companies having now resumed their activities thanks to a new relaxation of measures to combat the virus, ”explains Markit in his press release.
The index fell back to a historic low in April (13.6), before recovering in May (31.9) then in June (48.5).
Data from the Markit survey continue “to suggest the possibility of a sharp rebound in the region’s economy after an unprecedented second quarter collapse,” said Chris Williamson, an economist at the firm.
However, “changes in other variables, such as work in progress or employment, highlight the risks of deteriorating growth prospects,” he adds.
His first concern is “to see the recovery run out of steam beyond the initial rebound in activity”, as companies continue “to reduce their workforce at a worrying rate”.
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