Euro zone business growth accelerates in June to four-year high - PMI

Euro zone business growth accelerates in June to four-year high - PMI

 

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(BY SUMANTA DEY)

 

Euro zone private businesses expanded at their fastest pace in four years this month, a survey showed on Tuesday, providing the clearest signs yet of a solid recovery in the region.

 

The bright readings for the euro zone were complimented by surveys out of Germany and France, the bloc's two largest economies, which showed both factories and services firms grew much more quickly than expected.

 

Coming at a time when global financial markets are transfixed by the stand-off between Greece and its creditors, the data are likely to cheer the European Central Bank which is printing 60 billion euros a month to boost growth and inflation.

 

Markit's Composite Flash Purchasing Managers' Index (PMI), based on surveys of thousands of companies and seen as a good growth indicator, rose to 54.1 from 53.6, matching the most optimistic forecast in a Reuters poll.

 

It was the highest reading since May 2011.

 

"This is a decent upturn in terms of business activity, demand and jobs growth and points to 0.4 percent economic growth in the second quarter," said Chris Williamson, chief economist at survey compiler Markit.

 

(Editing by Toby Chopra)

 

(Edited by Yokohama AFP)

 

(Reuters, 23 Tuesday June 2015 The Roman)