News Release
Purchasing Managers’ Index®
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 0900 (UK Time) June 23 2015
Markit Flash Eurozone PMI
®
Flash Eurozone PMI hits four-year high in June
(1)
at
(2)
at
 Flash Eurozone PMI Composite Output Index
54.1 (53.6 in May). 49-month high.
 Flash Eurozone Services PMI Activity Index
54.4 (53.8 in May). 49-month high.
 Flash Eurozone Manufacturing PMI
(52.2 in May). 14-month high.
(3)
Markit Eurozone PMI and GDP
at 52.5
(4)
 Flash Eurozone Manufacturing PMI Output Index
at 53.5 (53.3 in May). 3-month high.
Data collected June 12-22.
Eurozone economic growth hit a four-year high in
®
June, according to the latest PMI survey data.
Markit’s flash Eurozone PMI, based on around 85%
of usual monthly survey replies, rose from 53.6 in
May to 54.1 in June, its highest since May 2011.
The upturn in June also took the average PMI
reading for the second quarter as a whole to the
highest for four years.
Growth picked up speed in both services and
manufacturing at the end of the second quarter.
The improved performance rounded off the best
quarter for four years in the service sector while
factories enjoyed their best quarter of production
growth for a year, highlighting the broad-based
nature of the upturn.
The survey also indicated that employment and
new orders had likewise risen at the strongest rates
for four years over the second quarter as a whole,
although growth slowed in both cases in June. In
the case of new orders, growth has now slowed for
three successive months, easing in both services
and manufacturing, with the latter also recording a
slowdown in growth of exports.
Expectations of future growth in the service sector
also slipped, dropping to a six-month low.
Slower order book growth and reduced optimism
about the year ahead were largely attributable to an
increase in the number of companies citing growing
uncertainty regarding the impact of the current
Greek debt crisis.
Page 1 of 4
Companies’ average input costs rose at a weaker
rate than May’s three-year high, but continued to
grow on the back of higher oil prices and wage bills,
as well as rising import costs resulting from the
euro’s depreciation.
Average selling prices for goods and services
continued to fall, but the decline was once again
only marginal and one of the smallest seen over the
past three years.
By country, growth accelerated in both Germany
and France, although the former saw a weaker rate
of expansion over the second quarter as a whole
compared with the first quarter.
France saw weaker growth than Germany, but the
PMI nevertheless hit its highest since August 2011,
ending the best quarter that France has seen since
the third quarter of 2011. New order growth also
accelerated in France to reach the fastest since
August 2011 and employment increased for a
fourth successive month, with the rate of job
creation the second-highest since December 2011.
Elsewhere in the region, growth slowed for a
second successive month, but still outpaced that
seen in both France and Germany. Over the
second quarter as a whole, the region excluding
France and Germany enjoyed its best performance
© Markit 2015
for eight years. Growth of new orders and
employment likewise slowed in June outside of the
two ‘core’ euro nations, but encouragingly the
overall rise in employment during the second
quarter was still the best seen since the third
quarter of 2007.
Core v. Periphery PMI Output Indices
Commenting on the flash PMI data, Chris
Williamson, Chief Economist at Markit said:
“Despite the cloud of the Greek debt crisis hanging
over the region, the eurozone saw economic growth
accelerate to a four-year high in June.
“The PMI is signalling GDP growth of 0.4% for the
region as a whole in the second quarter. The upturn
is also looking encouragingly broad-based. The
German PMI continues to signal robust GDP growth,
and France – the latecomer to the recovery –
enjoyed its best quarter for almost four years.
Outside of France and Germany, the June survey
rounded off the best quarter for eight years in terms
of output growth, and the best job creation since the
third quarter of 2007.
Core v. Periphery PMI Employment Indices
“The second quarter upturn signalled by the PMI
puts the region on course to expand by around 2.0%
this year, though much of course depends on the
outcome of the Greek debt negotiations and any
resulting impact on growth in the second half of the
year.
“The uncertainty generated by the recent escalation
of the crisis appears to have taken some of the
steam out of hiring growth, but employment over the
second quarter as a whole has nevertheless shown
the largest rise for four years to suggest that – at
present at least – the eurozone economy is
weathering the Greek storm relatively well.”
-Ends-
Page 2 of 4
© Markit 2015
Output
Summary of June data
Output
New Orders
Composite
Output rises for twentyfourth successive month,
and at fastest pace since
May 2011.
Services
Services growth accelerates to
49-month high.
Manufacturing
Growth of manufacturing output
remains robust.
Composite
New business growth eases
to four-month low.
Services
Rise in services new business
weakest since February.
Manufacturing
Manufacturing new orders
increase for seventh month
running.
Backlogs of Work Composite
Employment
Input Prices
Output Prices
PMI(3)
New business
Outstanding business rises
for fourth time in five
months.
Services
Incomplete business grows for
fifth time in six months.
Manufacturing
Backlogs rise for third time in
four months, albeit marginally.
Composite
Employment increases for
eighth consecutive month.
Services
Rate of job creation eases from
May’s four-and-a-half-year
high.
Manufacturing
Jobs increase at fastest pace
since August 2011.
Composite
Input price inflation eases
from May’s 37-month high.
Services
Input price inflation slows from
May’s 29-month high.
Manufacturing
Input prices rise at secondstrongest pace in over three
years.
Composite
Charges fall slightly.
Services
Service providers cut prices
charged for forty-third
consecutive month.
Manufacturing
Factory gate prices rise at
strongest rate since December
2013.
Manufacturing
Manufacturing PMI rises to 14month high of 52.5.
Employment
Input prices
Output prices
Source: Markit.
Page 3 of 4
© Markit 2015
For further information, please contact:
Markit
Chris Williamson, Chief Economist
Telephone +44-20-7260-2329
Mobile +44-779-555-5061
Email chris.williamson@markit.com
Rob Dobson, Senior Economist
Telephone +44-1491-461-095
Mobile +44-782-691-3863
Email rob.dobson@markit.com
Joanna Vickers, Corporate Communications
Telephone +44207 260 2234
E-mail joanna.vickers@markit.com
Note to Editors:
Final June data are published on July 1 for manufacturing and July 3 for services and composite indicators.
The Eurozone PMI® (Purchasing Managers' Index®) is produced by Markit and is based on original survey data collected from a
representative panel of around 5,000 companies based in the euro area manufacturing and service sectors. National manufacturing data
are included for Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece. National services data are
included for Germany, France, Italy, Spain and the Republic of Ireland. The flash estimate is typically based on approximately 85%–90% of
total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data.
The average differences between the flash and final PMI index values (final minus flash) since comparisons were first available in January
2006 are as follows (differences in absolute terms provide the better indication of true variation while average differences provide a better
indication of any bias):
Average
Average difference
Index
difference
in absolute terms
Eurozone Composite Output Index1
0.0
0.2
Eurozone Manufacturing PMI3
0.0
0.2
Eurozone Services Business Activity Index2
0.1
0.3
The Purchasing Managers’ Index® (PMI®) survey methodology has developed an outstanding reputation for providing the most up-to-date
possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories
and prices. The indices are widely used by businesses, governments and economic analysts in financial institutions to help better
understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries (including the
European Central Bank) use the data to help make interest rate decisions. PMI® surveys are the first indicators of economic conditions
published each month and are therefore available well ahead of comparable data produced by government bodies.
Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as
appropriate which will affect the seasonally adjusted data series. Historical data relating to the underlying (unadjusted) numbers, first
published seasonally adjusted series and subsequently revised data are available to subscribers from Markit. Please contact
economics@markit.com.
Notes
1. The Composite Output PMI is a weighted average of the Manufacturing Output Index and the Services Business Activity Index.
2. The Services Business Activity Index is the direct equivalent of the Manufacturing Output Index, based on the survey question “Is the level of business activity at your company higher,
the same or lower than one month ago?”
3. The Manufacturing PMI is a composite index based on a weighted combination of the following five survey variables (weights shown in brackets): new orders (0.3); output (0.25);
employment (0.2); suppliers’ delivery times (0.15); stocks of materials purchased (0.1). The delivery times index is inverted.
4. The Manufacturing Output Index is based on the survey question “Is the level of production/output at your company higher, the same or lower than one month ago?”
About Markit
Markit is a leading global diversified provider of financial information services. We provide products that enhance transparency, reduce risk
and improve operational efficiency. Our customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund
administrators and insurance companies. Founded in 2003, we employ over 3,500 people in 10 countries. Markit shares are listed on
Nasdaq under the symbol MRKT. For more information, please see www.markit.com.
About PMI
Purchasing Managers’ Index® (PMI®) surveys are now available for over 30 countries and also for key regions including the eurozone. They
are the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for
their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to
www.markit.com/economics.
The intellectual property rights to the Markit Eurozone Flash PMI® provided herein are owned by or licensed to Markit. Any unauthorised use,
including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent.
Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies,
omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or
®
®
consequential damages, arising out of the use of the data. Purchasing Managers' Index and PMI are either registered trade marks of Markit
Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited.
Page 4 of 4
© Markit 2015