RTTNews - Eurozone's composite output index or composite PMI stood at 47 in July, higher than the flash estimate of 46.8 and 44.6 in June, the latest survey from the Markit Economics showed Wednesday. The latest reading signaled an easing in the rate of contraction for the fifth month in a row and the weakest drop in output since last August, the report said.

However, output fell for the 14th consecutive month, marking the longest and deepest downturn in the 11-year history of the survey. Manufacturing, outperformed services for the first time in 13 months as goods production showed signs of stabilizing. Services sector activity continued to fall at a marked pace, though the rate of contraction eased to the slowest since October.

Incoming new business fell less than indicated by the flash estimate, reflecting the smallest deterioration since August. Backlogs of work fell sharply, but the rate of fall slowed to the weakest since last September. Employment fell at a faster pace, but still at the slowest pace since January.

Input prices dropped at a faster pace in June, reversing the easing trend of the past three months, driven by falling wage pressures. The fall in output prices moderated for the fourth consecutive month, but remained severe owing to intense competition.

Chris Williamson, Markit Chief Economist noted that the improvement in the final PMI raises hope that the Eurozone economy could stabilize in the second half of the year, led by manufacturing, where production recorded only a marginal fall in July.

Meanwhile, a separate report by Markit showed that the services business activity index or the services PMI increased to 45.7 in July from the flash estimate of 45.6, marking the highest reading since October last year.

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