Professional welder apprentices work at a training center in Siegburg, Germany.
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London — According to preliminary data released Wednesday, business activity in the euro area has grown at the fastest pace in 15 years this month.
As vaccination programs continue to accelerate, 19 economies have recently taken various steps to reopen them. For example, in France, the curfew has been lifted and you must wear a face mask outdoors. Italians were able to stand coffee on the counter, as in their tradition, after indoor meals were resumed. In addition, more tourists are welcomed in the area.
IHS Markit’s flash composite PMI for the euro area, which investigates both manufacturing and service activities, reached 59.2 in June, compared to 57.1 in May. Numbers above 50 represent the expansion of economic activity.
According to IHS Markit, this was the highest measurement in 180 months, or 15 years.
Chris Williamson, chief business economist at IHS Markit, told CNBC’s “Street Signs Europe” Wednesday that “it’s a very promising sign that recovery is gaining momentum.”
“The fastest growth in 15 years of business activity, the demand measured for new orders is also growing at the fastest rate in 15 years, driving it, and employment growth is steadily accelerating, so it’s breathtaking. It’s such a full recovery, as well, “he added.
However, economic uncertainty remains, especially in countries with relatively high unemployment, due to deltacoronavirus variants and labor market shortages that lead to higher infection rates.
“We’ve seen hospitality sectors, hotels, and restaurants that are certainly the hardest hits we’ve seen. There’s a lot of pressure to quickly get enough people to meet the surge in demand. 7 It gets worse when we see these economies restart further in the month. “
Flash France’s combined output index is from 57.0 in May to 57.1 in June, the highest in 11 months. The recent removal of the Covid-19 restriction has contributed to increased sales. Also, new orders from manufacturers experienced one of the fastest increases since the 2020 pandemic hit.
Joe Hayes, Senior Economist at IHS Markit, said:
“The rise in vaccination rates suggests that companies are more confident that they are in the process of recovery,” he said. “Suppliers will eventually boost the economy.” I’m suppressing it. “
Meanwhile, Flash Germany’s PMI combined output index reached a record high of 123 months, reaching 60.4 in June from 56.2 in May.
“Further deregulation of Covid-19 has further accelerated the recovery of the German economy, with the” flash “PMI jumping to its highest level for over a decade. In addition, the containment measures will be lifted further in July. This strong momentum is moving towards being carried over to the third quarter. ” Phil Smith, Associate Director of IHS Markit, said in a statement.
Fastest growth rate in 15 years
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