(MENAFN– ecpulse) Euro area manufacturing and services composite showed a widening expansion in July to raise hopes recovery in the euro area is gathering momentum once again.
PMI composite of manufacturing and services came in at 53.8 this month from 52.8 in June, lower than median forecasts of 54.0. The reading matched a three-year high posted in April, where the gauge held above the 50 benchmark for a 50 th straight month.
The manufacturing sector growth lingered at 51.8, while the services gauge recorded 54.2 from a prior of 52.8.
In Germany, the manufacturing sector widened expansion to 52.4 this month from 52.0 while the services strengthened to 56.7, the strongest in three years, from 54.6.
The French PMI manufacturing slipped to 47.8 in July from 48.2 and services measure returned to expansion by recording 50.4 from 48.2.
The ECB has referred in more than occasion the economy will recover in a gradual manner, but the recent fall in prices have raised concerns about recovery path.
Perhaps the improvement in today’s data delivers a confidence message after the measure introduced by the ECB in June.
The 18-nation region grew 0.2 percent in the first quarter, while economists predict a 0.3 percent expansion in the three months through June.
The ECB decided in June to cut its benchmark interest rate to 0.15 percent from 0.25 percent and the deposit rate to -0.10 percent from 0.00 percent.
However, there are grave concerns meanwhile amid the low inflation encountering the 18-nation region, where data released this showed that euro area CPI for the year through July dipped to 0.4 percent.
As of 08:11 GMT, the EURUSD traded lower around 1.3406 after setting a low of 1.3400.
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