(Aug 3 Bloomberg) *Purchasing Manager's Index rises to 53.2 in July from 53.1 *Gauge signals little contagion from UK vote, Markit says
Euro-area output unexpectedly accelerated to the highest in six months, signaling that manufacturers and services providers are shrugging off concerns that the U.K.'s vote to leave the European Union will harm business.
A Purchasing Manager's Index for both industries rose to 53.2 in July from 53.1 in June, Markit Economics said Wednesday. A July 22 estimate was for a drop to 52.9. A reading above 50 indicates expansion.
The increase "presents a slightly better picture" and "is especially encouraging as it suggests the region saw little overall contagion from the U.K.'s Brexit vote," said Chris Williamson, chief economist at Markit in London. An "improving hiring trend suggests firms have gained sufficient confidence in the durability and sustainability of the upturn to expand capacity in increasing numbers."
A pickup in private sector activity is the latest sign of the region's resilience to the outcome of Britain's June 23 referendum rejecting EU membership. Most euro-area confidence indicators have barely budged in the past four weeks, while data suggest the U.K. economy is already deteriorating.
Click on the link below to see the full story from Bloomberg: (by Carolynn Look)