Data released on Thursday for the Eurozone painted a mixed picture as signs of improvement in the Eurozone were countered by the apparent slowing of the Eurozone’s largest economy, Germany.
Eurozone consumer confidence has improved sharply in June according to data released by the European Commission. The commission said that consumer confidence in the Eurozone rose to -18.8 points in June, an improvement on the figure of -21.9 points in May. In the whole of the European Union consumer confidence improved to -17.5 in June, up from -20.2 in May.
As well as the rise in the consumer confidence the Eurozone’s private sector slump eased by a bigger than expected margin in June.
Markit’s Flash Eurozone Composite Purchasing Managers Index which makes up around 85% of the final reading and is seen as a reliable economic growth indicator for the Eurozone increased to 48.9 in June, up from May’s level of 47.7.
Despite the improving figures it was France and Germany, the region’s top two economies that have caused concern among investors.
The German private sector squeezed out growth for a second straight month but new business orders saw a large slump, suggesting that Europe’s biggest economy has failed to expand in the second quarter of the year. The countries PMI rose to 50.9 in June remaining above the 50 mark separating growth from contraction.
Markit chief economist Chris Williamson said the German PMI would probably translate into a flat growth rate in the second quarter or 0.1% growth at best.
“It’s an economy that’s just managing to keep its head above water. It’s stagnating and we may see some growth in the third quarter, but companies are certainly finding it very tough at the moment (and are) cutting headcounts,” he said.
The Euro meanwhile has fallen sharply against the US Dollar after the Fed Reserve said that it would be scaling down its bond buying programme and fell against Sterling as investors favoured the improving British economy.
Euro (EUR) Exchange Rates As of 16:00pm –
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3173
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8518
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4348
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7056
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3675