Growth in Europe Eases; Swiss Confidence Slumps

Arthi Gupta
21 Jul, 2011
New York City

European private sector growth slowed in July. Euro area current account deficit widened and German construction orders improved in May. Swiss investor confidence slumped in July. Dutch jobless rate slid in June.

[R]2:30 PM Frankfurt – European private sector growth slowed in July. Euro area current account deficit widened and German construction orders improved in May. Swiss investor confidence slumped in July. Dutch jobless rate slid in June.[/R]

Euro-zone Private Sector Growth Slackens, Deficit Widens

The Flash Eurozone Composite Purchasing Managers'' Index fell to a 23-month low of 50.8 in July from 53.3 recorded in June, preliminary data released by Markit Economics showed today. The latest reading was the lowest since August 2009.

The Manufacturing PMI slid to 50.4 in July from 52 in June. The Services PMI declined to 51.4 in July from 53.7 in June. Manufacturing and services index readings were the weakest in 22 months.

In another report, euro-zone current account deficit widened to a seasonally adjusted €5.2 billion in May from €4.8 billion in May last year, the European Central Bank said today.

German Private Sector Growth Eases

Germany''s private sector expanded at a slower pace in July, according to data released by Markit Economics.

The seasonally adjusted flash Markit/BME composite output index decreased to a 24-month low of 52.2 in July from 56.3 in June.

German Construction Orders Up

New orders received by construction enterprises in Germany rose 13.8% from a year ago in May. Orders for the construction of buildings climbed 28.1% annually, while orders for civil and underground engineering works increased 0.5% in May.

French Private Sector Activity Slows

French private sector growth eased to a 23-month low in July, according to survey results from Markit Economics.

The composite output index declined to 52.8 in July from 54.9 in June.

The services activity index dropped to a 16-month low of 54.2 in July from 56.1 in June. The manufacturing purchasing managers'' index slipped to 50.1 in July from 52.5 in June. This was the lowest reading in 24 months.

Swiss Confidence Slumps

Swiss economic expectations weakened in July, according to latest survey results from the Center for European Economic Research (ZEW) and Credit Suisse released today.

The CS-ZEW indicator fell by 34.6 points from the previous month to minus 58.9 in July. This was the lowest reading since the beginning of 2009.

Dutch Jobless Rate Drops

The seasonally adjusted jobless rate for the Netherlands fell to 5% in June from 5.1% in May, data from the Central Bureau of Statistics showed on Thursday.

There were 392,000 unemployed persons in the country in June and the number of persons claiming the unemployment benefits fell by 36,000 from a year ago to 252,000.