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Weaker eurozone activity in June - new report shows

Independent.ie reporters

Published 05/07/2011 | 13:34

Eurozone: 'Sharpest slowing in growth since the collapse of Lehman'. Photo: Thinkstock
Eurozone: 'Sharpest slowing in growth since the collapse of Lehman'. Photo: Thinkstock

Private sector activity in the eurozone hit a 20-month low in June pulled down by slower recoveries in Germany and France.

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Ireland, Italy and Spain continued to report a “very modest” rate of growth, according to new Purchasing Managers Index (PMI) figures from research firm Markit.



“Over the past two months, the region has seen the sharpest slowing in growth since just after the collapse of Lehman's in late-2008,'”said Markit chief economist Chris Williamson.



The PMI is a survey of 4,500 companies in service and manufacturing in the eurozone.



It dropped to 53.3 points in June from 55.8 in May.



The euro zone recorded growth of 0.8pc in the first quarter but economists have warned that the Greek crisis and ongoing pressures on other economies like Ireland will make that rate of growth very difficult to sustain.



'”The further loss of momentum in June bodes ill for the third quarter and suggests that growth may weaken further unless order books improve,'” Mr Williamson said.

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