Eurozone Economic Growth Falters in July

06 August 2002

Employment levels in the Eurozone - the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, The Netherlands and Spain) within the twelve-nation euro currency zone – stagnated in July, according to the monthly Reuters Report on Eurozone, researched and produced by NTC Research. Costs within the zone, however, rose sharply.

The key findings for July were …

The Eurozone Composite Output Index fell from 53.2 in June to 52.9 in July. At a level above the no change mark of 50.0, the index signalled an expansion of output for the sixth month running. However, the fall of the index reflected a slight easing in the rate of growth and suggests that the pace of recovery from the four-month contraction at the end of last year remains sluggish.

New Business
The Eurozone Composite New Business Index rose very marginally in July, up from 52.5 in June to 52.6, to indicate an increase in total demand for goods and services during the month. The index has now signalled an increase in the volume of new orders for six consecutive months, with the pace of growth rising slightly over the latest two months.

The Eurozone Composite Employment Index signalled further near stagnation of labour market growth in July. In fact, at 49.8, the index remained slightly below the 50.0 no change level to register a marginal drop in employment.

The Eurozone Composite Prices Index rose from 57.0 in June to 57.1 in July, registering the seventh successive monthly rise in costs and the fastest rate of input price inflation for seventeen months.

Data sourced from: NTC Research; additional content by WARC staff