(MENAFN– ecpulse) Euro area manufacturing sector’s growth narrowed expansion to 51.8 in June from 52.2 in May, according to the PMI final reading. The flash reading was revised down from 51.9.
Later in the week, the services gauge will be available to provide a complete picture about the economy’s biggest sectors.
Germany’s manufacturing retreated to 52.0 from 52.3, while French manufacturing widened contraction after recording 48.2 from a preceding of 49.6. In Italy, the reading came in at 52.6 from 53.2.
However, in Spain factory PMI leaped to 54.6 last month from 52.9 a month earlier.
Data released yesterday showed that euro area CPI for the year June lingered at 0.5 percent to add more pressure on the ECB before Thursday’s monetary decision.
Last month, the ECB slashed to the benchmark interest rate to 0.15 percent from 0.25 percent and the deposit rate to -0.10 percent from 0.00 percent.
The bank also announced some measures including “further reductions in the key ECB interest rates, targeted longer-term refinancing operations, preparatory work related to outright purchases of asset-backed securities and a prolongation of fixed rate, full allotment tender procedures,” ECB bulletin for June said.
“The Governing Council decided to suspend the weekly fine-tuning operation sterilizing the liquidity injected under the Securities Markets Programme,” the bulletin added.
This week’s monetary decision is not predicted to witness something new, where ECB President Mario Draghi will probably give more details about the measures introduced on June 5.
As of 08:32 GMT, the EURUSD was little changed to trade around 1.3687 after posting a low of 1.3677.
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