EU & UK Manufacturing PMI Signal Contraction, Euro-Zone Jobless Rate Rose to 11.1% - 2.7.2012

The UK Manufacturing PMI Index remained below 50, with a value of 48.6 for June indicating that the Manufacturing in the UK remains contracted for a second consecutive month, according to the CIPS. In May the Manufacturing PMI was at 45.9 falling from 50.2 in April, therefore even though it rose in June, it remained below 50 which shows a contraction in manufacturing activity. The Euro-zone Manufacturing shrank as well, it was reported at 45.1 for June, slightly higher from May’s level of 44.8. The Euro-zone Manufacturing PMI has remained below the 50 mark since July 2011.

The Unemployment Rate rose to 11.1 per cent in the euro area for May, up from 11 per cent in April. Analysts are estimating the rise is attributed to spending cuts from bailouts given to countries such as Greece and Spain.