“Euro-area manufacturing output contracted less than initially estimated in June, adding to signs the currency bloc’s economy is beginning to emerge from a record-long recession.
A gauge of manufacturing in the 17-nation euro area increased to 48.8 last month from 48.3 in May, London-based Markit Economics said today. That’s above an initial estimate of 48.7 on June 20. The gauge has been below 50, indicating contraction, since July 2011.
Today’s PMI data followed an encouraging euro-zone economic confidence report for June that recorded the biggest jump since July 2010. The 17-nation economy’s 18-month recessionprobably ended in the second quarter, as the economy stagnated before returning to growth in the following three months, according to a Bloomberg News survey of economists.
European Central Bank President Mario Draghi said last week that policy makers stand ready to act to support economic growth in the euro area. The Frankfurt-based central bank cut its benchmark interest rate to a record-low 0.5 percent in May.
The ECB’s monetary policy “will stay accommodative for the foreseeable future,” Draghi said. “We have an open mind about all other possible instruments that we may consider proper to adopt.”…”
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