Euro Private Sector Growth Slows to 20-Month Low, Swiss Surplus Soars

Arthi Gupta
23 Jun, 2011
New York City

Euro-zone consumer confidence fell in June and private sector growth fell to a 20-month low. French factory sector growth slowed in June. Swiss trade surplus surged and Dutch jobless rate rose in May. Italian consumer sentiment declined.

[R]2:00 PM Frankfurt – Euro-zone consumer confidence fell in June and private sector growth fell to a 20-month low. French factory sector growth slowed in June. Swiss trade surplus surged and Dutch jobless rate rose in May. Italian consumer sentiment declined.[/R]

Euro-zone Confidence Drops, Composite Falls

The flash consumer confidence index for the euro area fell to minus 10 from a downwardly revised minus 9.9 in May, data released by the Directorate-General of Economic and Financial Affairs showed.

The confidence index for the European Union fell to 11.1 in June from 10.7 in May.

Euro-zone private sector expanded at the weakest pace in twenty months in June, led by sharp slowdown in the manufacturing sector, a survey by Markit Economics showed.

The composite output index, a measure of activity in both manufacturing and services dropped to 53.6 in June from 55.8 in May.

The manufacturing purchasing managers'' index dropped to 52 in June from 54.6 in May. The service sector growth fell to 54.2 in June from 56 in May.

French Factory Sector Growth Slows

France''s factory sector expanded at a slower pace in June, preliminary results of a survey by Markit Economics and the country''s purchasing managers'' association CDAF showed today.

The Markit/CDAF Purchasing Managers'' Index for the manufacturing sector fell to a five-month low of 52.5 in June from May''s 54.9. Production in the manufacturing sector increased at the slowest pace since July 2009, reflecting a sharp easing of new business growth to a 22-month low.

Swiss Trade Surplus Surges, Watch Exports Up

Switzerland''s trade surplus increased to a record high of Sfr3.31 billion in May compared to a surplus of Sfr1.44 billion in April, data from the Federal Customs Administration showed.

During May, the seasonally adjusted exports declined 1.5% on a monthly basis in real terms to Sfr18.4 billion following a 3.1% increase in April.

Imports fell 8.4% to Sfr15.1 billion in May, after a 5.9% gain in April.

Separately, Switzerland''s total watch exports increased 31.6% annually to Sfr1.63 billion in May, data released by the Federation of Swiss Watch Industry showed on Thursday.

Shipments of wrist watches rose 30.6% annually to Sfr1.53 billion and dispatches of other products climbed 47.3% to Sfr105.8 million in May.

Dutch Jobless Rate Rises

The seasonally adjusted jobless rate in the Netherlands increased to 5.1% in May from the 5% recorded in April, the lowest since mid-2009, data released by the Central Bureau of Statistics showed.

The number of persons without work rose to 400,000 in May from 392,000 in April, when it dropped by 3,000.

The number of unemployed women rose to 182,000 in May from 174,000 in April.

The number of jobless youth, aged between 15 and 24, also increased in May, for the first time in seven months. The number climbed to 78,000 in May from 75,000 in April.

Italian Consumer Sentiment Declines

Italy''s consumer confidence index dropped to 105.8 in June from 106.5 in May, data released by statistics office Istat showed on Thursday.

Swedish PPI Slackens

Sweden''s producer price index increased 1% annually in May, slower than the 1.9% growth in April, data released by Statistics Sweden showed.

The export price index dropped 0.3% in May and the import price index increased 1% annually. On a monthly basis, export prices and import prices decreased 0.6% and 1.5%, respectively in May.

On a monthly basis, producer prices decreased 0.9% in May.