Euro zone manufacturing contracted at a slower rate in June as the euro's fall helped boost demand for European exports, a survey showed today.
The NTC Research Euro zone Purchasing Managers' Index edged up to 49.9 in June from 48.7 in May, posting its first rise in five months. But although the index came in above a consensus forecast of 49.0, it remained just below the 50 mark dividing growth from contraction.
The euro, which has fallen by around 11 per cent since the start of the year, helped boost the competitiveness of European goods overseas, but without a pickup in domestic demand the recovery could falter if the euro strengthens again.
The new orders index rose back above the 50 line for the first time in three months to 50.9 from 48.5, driven principally by the rise in export demand. Of the big four euro nations, only Spain failed to see an increase in new export sales while Germany saw the strongest growth.
The survey covers around 3,000 companies in Germany, France, Italy, Spain, Ireland, Greece, Austria, Greece and the Netherlands.