http://www.bloomberg.com/apps/news?pid=20601087&sid=aEWsc6ZlTftE
European Manufacturing, Services Contraction Weakens (Update1)
By Simone MeierJune 23 (Bloomberg) -- Europe’s manufacturing and service
industriescontracted at a slowest pace in nine months in June, adding to
signs the recession is bottoming out.A composite index of both industries for
the 16 euro nations rose to 44.4, the highest since September, from 44 in May.
The index is based on a survey of purchasing managers by Markit Economics and a
reading below 50 indicates a contraction. Economists forecast an increase to
44.9, according to the median of 12 estimates in a Bloomberg News survey.The
European economy is showing signs of stabilization after shrinking at the
fastest pace in at least 15 years in the first quarter. In Germany, the
region’s largest economy, business confidence rose for a third month in June
andconsumer sentiment gained for a second month. European Central BankPresident
Jean-Claude Trichet said this month that the worst of the recession may be past
after the ECB cut interest
rates to a record low and pledged to buy covered bonds to fight the
crisis..“It’s a rebound not a recovery,” said Sylvain Broyer, chief euro-region
economist at Natixis in Frankfurt. “We have positive signs for global trade,
but they’re still very, very fragile. We may only return to above 50 by the end
of 2009.”
