Eurozone Output Looking Good Through July

05 August 2004

The Reuters Eurozone Composite Output Index -- an indicator of combined manufacturing and service output -- rose again in July, notching the twelfth consecutive month of growth.

The monthly report, compiled for Reuters by NTC Research, is based on data supplied by some 2,000 companies within the Eurozone -- the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, Netherlands and Spain) within the twelve-nation euro currency area.

Key findings for July are as follows …

  • Composite Output Indices
    The index rose to 56.0 from 55.6 in June. Any reading above the 50-fulcrum indicates expansion of output; below that mark, contraction. While business activity within the Service Sector remained flat over the month with the index remaining at 55.3, the Manufacturing Output Index recorded 57.1 in July, up from 56.0 in June to register an improvement in factory output for the eleventh month running.

  • Composite New Business Index
    This recorded 55.2 in July, down from 55.4 in the previous month. New business has now risen for twelve successive months, although the rate of increase in recent months has failed to match the pace set at the start of the year.

  • Composite Input Prices Index
    This fell for the second successive month, down from a recent peak of 64.1 in May and 63.5 in June, to reach 62.9 in July. Nevertheless, by remaining well above the 50.0 no-change level, the index continued to register a steep increase in costs during the month.
The Reuters indices are currently based on data from panels in Germany, Italy, France, Spain and Ireland. Combined, these countries account for an estimated 83% of Eurozone private sector services output.

Although coverage is incomplete, the proportion of total activity covered by the survey means that the data should be regarded as a good indicator of overall economic conditions.

For more information on the Reuters Eurozone reports click here.

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