Eurozone July Growth Slips Again From May 6Yr High: IHS Markit

--Eurozone July Composite PMI At 55.7 From 56.3 In June

     LONDON (MNI) - Eurozone output growth slowed modestly in July from June,

further backing away from the near 6-year high seen in May, a survey released

Thursday showed, with the expansion again led by the manufacturing sector.

Growth outpaced the preliminary report published recently.

     The July Markit Composite Purchasing Managers' Index stood at 55.7, down

from 56.3 in June, although outpacing the 55.7 June flash reading. 

     According to the survey, growth was again seen across all of the 'big four'

nations, although modestly slower in some, with employment growth showing the

biggest monthly pick up in a decade in Germany and Italy, but slowing somewhat

in Spain and France.

     Output and input cost inflation remained elevated, but below 2017's

multi-year highs, falling to 6- and 8-month lows respectively.

     "The eurozone economy made a solid start to the third quarter. Although

July saw rates of expansion in business activity and new work moderate, growth

in both remained among the best registered over the past six years," the survey

said.

     "The surveys indicated a slight cooling in the pace of growth in July, but

this is still an encouragingly upbeat picture of business conditions. The

elevated PMI reading puts the eurozone economy on course for another strong

quarter, the data being historically consistent with a very respectable 0.6% q/q

increase in GDP," said Chris Williamson, chief business economist at IHS Markit.

     "While all countries continued to see ongoing robust growth as we move into

the second half of 2017, the overall slowing in the rate of expansion will add a

note of caution to ECB policymaking, though the underlying message is likely to

be one of guarded optimism about the outlook," he added. 

     The full text of the IHS Markit release can be seen here: goo.gl/6JjHKa

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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