Eurozone Private Sector Growth Bullish, Jobs Bearish

04 August 2005

The Eurozone Composite Output Index, which measures the output of the combined manufacturing and service sectors, rose for the third consecutive month in July, up from June's 52.3 to 53.2, a six-month high.

The latest monthly Report on the Eurozone from UK-headquartered NTC Research reveals a solid rate of output growth - a trend that has been sustained for two years, although the July level remained below the average for that period.

Other key indicators from the Eurozone are …

  • New Business
    The New Business Index rose to 52.7 in July, from June's 51.7, signalling faster growth of demand for goods and services. The latest increase in new business was the most marked in six months. However, growth remained below the average for 2004.

  • Input Prices
    The Input Prices Index rose to a three-month high of 55.7 in July. However, the rate of increase indicated by the latest reading remained well below the rapid pace seen as recently as the beginning of this year. The pick-up in cost inflation was largely driven by higher oil prices.

  • Employment
    The Employment Index remained below 50.0 for the fourth month running in July, thereby indicating a further reduction in private sector employment. However, at 49.4, the index signalled only a marginal fall in workforces.
The Eurozone comprises the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, Netherlands and Spain) within the twelve nation euro currency area.

The data are based on the results of surveys carried out in Germany, France, Spain, Italy, Austria, Ireland, Greece and the Netherlands (plus the UK, Poland and the Czech Republic for the EU data), covering over 6,000 manufacturing and services companies.

For further information on Eurozone data click here.

Data sourced from NTC Research; additional content by WARC staff