Fastest growth in 15 years

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A few tourists take a look at Balos Beach and its lagoon in the northwest of the island of Crete on May 13, 2021.

LOUISA GOULIAMAKI | AFP | Getty Images

LONDON – Eurozone business grew the fastest in 15 years this month, according to preliminary data released on Wednesday.

The 19 economies have recently taken various steps to reopen their economies as vaccination programs continue to accelerate. France, for example, has lifted a night curfew and the need to wear a face mask outdoors. Italians can now, as is their tradition, leave their coffee on a counter after eating has resumed indoors. In addition, more tourists are now welcomed to the region.

IHS Markit’s composite flash PMI for the euro area, which studies activity in both manufacturing and services, hit 59.2 in June, up from 57.1 in May. A value above 50 means an expansion of economic activity.

“The eurozone economy is booming at a pace it has not seen in 15 years as companies report increasing demand, with the boom broadening and expanding from manufacturing to more service sectors, particularly consumer-centric companies,” said Chris Williamson, chief business An economist at IHS Markit said in a statement.

The European Central Bank estimated earlier this month that the euro zone would grow at a rate of 4.6% this year and 4.7% next year – a stronger outlook from its March assessment.

Economic uncertainty remains, however, especially due to the delta coronavirus variant, which leads to higher infections, as well as labor market shortages – even in countries with relatively high unemployment rates.

French companies experience successive expansions

Flash France’s composite manufacturing index hit 57.1 in June from 57.0 in May, an 11-month high. The recent lifting of the Covid-19 restrictions contributed to a higher number of sales. New orders from manufacturers also saw one of the fastest increases since the pandemic in 2020.

Joe Hayes, Senior Economist at IHS Markit, said: “The French economy has had its best quarterly performance since early 2018.”

“With vaccination rates soaring, survey data suggests companies are becoming more confident that the conditions are in place for an economic recovery,” he said, adding that “the recovery could get some boosts of speed if the supply side ultimately holds up.” Economy back. “

Meanwhile, the Flash Germany PMI composite production index hit 60.4 in June from 56.2 in May, a 123-month high.

“The further easing of the Covid-19 restrictions has given the recovery of the German economy an additional boost, with the ‘Flash’ PMI rising steeply to its highest level in over a decade. And with containment measures expected to continue lifting in July, that strong momentum is expected to carry over into the third quarter, “Phil Smith, associate director at IHS Markit, said in a statement.