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Slight optimism over European economic activity

2020-06-24T21:59:31.140Z


In June, activity retreated at a slightly slower pace than expected.Thanks to a gradual easing of measures, private sector activity continued to fall in June in the euro area, but at a slower pace than during the containment. This is what the first estimate, published Tuesday, of the PMI composite index of the Markit firm says. Read also: The risk of a heterogeneous recovery weighs on the future of the euro area The monthly index posted 47.5 points, against 31.9...


Thanks to a gradual easing of measures, private sector activity continued to fall in June in the euro area, but at a slower pace than during the containment. This is what the first estimate, published Tuesday, of the PMI composite index of the Markit firm says.

Read also: The risk of a heterogeneous recovery weighs on the future of the euro area

The monthly index posted 47.5 points, against 31.9 points in May and 13.6 points in April, which was the largest contraction in activity ever recorded. When the PMI is above 50 points, it means that the activity progresses. It decreases if it is below this threshold. France, for its part, returned to expansion for the first time in four months, as did the United Kingdom, which recorded a marked rebound.

British embellishment

Private sector activity also improved significantly in June in the United Kingdom, with a much less marked slowdown than in previous months, thanks to the start of deconfinement, according to the PMI composite flash index released on Tuesday.

Read also: In the United Kingdom, strong rebound in activity in June with the start of deconfinement

The index rose to 47.6 points (final measure), notes the firm IHS Markit. If economic activity therefore still shows a slowdown in June, it is much lighter than in the previous three months. Strict containment throughout April resulted in a 20.4% collapse in British gross domestic product (GDP), an all-time high, after a 5.8% drop in GDP in March. " The PMI is further proof that the bottom was hit in April and that activity started to pick up in May and a little more in June, " said research firm Capital Economics.

The Paris Bourse gains confidence

This optimistic impulse seems to be reflected in Paris, where the stock market kept a positive course Tuesday at midday (+ 1.56%), boosted by activity figures in the eurozone opening up less gloomy prospects for the economy. Shortly after noon, the CAC 40 index gained 77.17 points to 5025.87 points. The day before, it had finished down 0.62%. The Parisian rating chose the rise at the opening and then accelerated further.

Read also: The Paris Bourse is moving forward again in the hope of an economic thinning

At the same time, and even if the markets are focusing on the right indicators for the time being, " concern is growing over the rise in the number of Covid-19 cases, particularly in Latin America, China and the United States", nuanced Franklin Pichard, director of Kiplink Finance.

The health situation remains very difficult with nine million infections worldwide, a threshold of 120,000 deaths exceeded in the United States and a coronavirus pandemic which " continues to accelerate ", according to the World Health Organization.

Source: lefigaro

All business articles on 2020-06-24

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