Thursday, 5 September 2013

Europe out of recession, China and US maintain growth

A report on Wednesday confirmed that the eurozone economy grew 0.3 percent in the second quarter to bring its recession to an end. Exports to the rest of the world rose sharply in the quarter after falling for six months, while government spending made its first positive contribution to the economy since late 2009.

Another report on Wednesday showed that retail sales in the euro area rebounded 0.1 percent July after having fallen 0.7 percent in June.

In another sign of recovery in the euro area, Markit reported on Wednesday that its composite index for the region rose to 51.5 in August from 50.5 in July, with the service sector index rising to 50.7 from 49.8.

Outside the euro area in Europe, the UK reported yet more strong data on Wednesday. The Markit/CIPS UK services PMI rose to 60.5 in August, the highest since December 2006, from 60.2 in July, marking the first back-to-back readings above 60 since 1997.

Elsewhere in the world, China's services sector also showed signs of improvement in August. The Markit/HSBC services PMI for China rose to 52.8 last month from 51.3 in July.

Meanwhile, the US economy maintained a “modest to moderate” pace of expansion from early July through late August, the Federal Reserve reported in its Beige Book on Wednesday.

Indeed, the US trade deficit widened in July as improving demand led to a 1.6 percent increase in imports. Exports fell 0.6 percent though.

No comments:

Post a comment