World trade surge boosting services and manufacturing
Published 23/07/2010 | 05:00
GROWTH in Europe's services and manufacturing industries unexpectedly accelerated in July as an increase in global trade spurred exports.
A composite index based on a survey of euro area purchasing managers rose to 56.7 from 56 in June, London-based Markit Economics said.
"It was surprisingly robust," said Klaus Baader, chief euro-region economist at Societe Generale in London. "It looks as if the second half won't show as much cooling as expected."
European stocks gained for a third day. The Stoxx Europe 600 Index advanced 1.9pc to 253.92. The euro rose 1.3pc against the dollar to $1.2919.
An index of euro area services, which account for about 60pc of the region's GDP, rose to 56 in July from 55.5 in the previous month, Markit reported.
The data may also show a divergence between economic performance in Germany and in the so-called peripheral euro region, said Ralph Solveen, head of economic research at Commerzbank AG in Frankfurt.