Eurozone economic expansion eases in July but beats expectations

Economic expansion in the Eurozone eased in July as growth in France and Italy slowed, according to data released by Markit, although the figures beat expectations.

The final Eurozone Composite Output Index came in at 53.9, above the flash estimate of 53.7 and better than the 53.9 reading expected, but below June’s 54.2.

Market said solid expansions of output were signalled in both the manufacturing and service sectors, with the slightly faster rate of growth at service providers.

Spain registered the best rate of economic growth of the ‘big four’ Eurozone nations, with the pace of expansion moving back towards April’s 101-month record. Growth in Germany remained solid and steady, but a slowdown was seen in France and Italy.

Markit’s chief economist, Chris Williamson, said: “The Eurozone economy showed reassuring resilience in the face of the Greek debt crisis in July. Despite a record deterioration in Greek business conditions amid extended bank closures, the overall pace of economic growth across the region barely slowed from June’s four-year high.”