Manufacturing and service sector activity in the 13-nations sharing the euro softened slightly in July but held firmly above long-term trends, according to a survey released today.
First results for NTC Research's survey of business leaders showed a dip to 57.3 points in July, down from 57.8 points and slightly below economists' expectations for 57.5 points.
Despite the lower level of activity, the index remained well above the 50-point level indicating expansion and was also above the average of 57.4 points recorded over the first half of the year.
'The slowdown in service sector activity was minimal, and with incoming new business at a 13-year high and outstanding business remaining elevated, near-term prospects at least are favourable,' Global Insight economist Howard Archer said.
'The manufacturing slowdown was more pronounced in July, undoubtedly reflecting the strong euro and high oil prices, but was still relatively healthy by long-term norms,' he added.
The euro has recently been hitting new highs against other major currencies while oil has been trading at the highest level in nearly a year.
