(RTTNews) - Tuesday, the first day of the month of July remained busy with some key data releases from Eurozone and the latest manufacturing sector survey results. In the UK, a report showed that annual house price decline worsened in June.

Eurozone

Eurozone’s Purchasing Managers’ Index for manufacturing sector signaled deterioration in operating conditions for the first time in three years, a survey showed Tuesday. A survey conducted by RBS Global Banking & Markets by Markit Economics showed that the manufacturing Purchasing Managers’ Index, or PMI fell to 49.2 in June to signal deterioration in operating conditions. The reading stood above the flash reading of 49.1, but below May’s 50.6. A PMI reading below 50 suggests expansion in manufacturing sector, while a level below 50 indicates contraction.

The statistical office Eurostat reported that Eurozone unemployment rate remained at 7.2% in May, same as in April. The jobless rate for April was revised up from an initial estimate of 7.1% and economists expected the jobless rate to stay at 7.1%. The EU27 jobless rate was 6.8% in May compared with 6.7% in April.

Destatis reported that Germany’s retail sales in real terms increased 0.7% year-on-year in May, reversing a revised 0.2% fall in April. Economists had expected a 1.1% fall. Earlier, the April figure was reported 1% fall. On a monthly basis, the seasonally as well as calendar adjusted retail sales increased 1.3%, while consensus was for 0.8% increase. In April, it fell 0.6%, revised from a 1.7% decrease reported earlier.

In a separate communiqu�, the statistical office said Germany’s ILO jobless rate remained stable at 7.4% in May from April. The figure came in line with economists’ expectations. At the same time, the jobless rate stood lower, compared to 8.5% recorded in the year before. The number of unemployed decreased 440,000 persons or 12.2% year-over-year in May.

Later in the day, a report from the German Labor Office showed that the unemployment rate fell to 7.8% in June from 7.9% in May. Economists had expected the rate of unemployment to remain stable at 7.9%. According to the labor office, the number of unemployed people fell 38,000 in June, bigger than the expected fall of 15,000. In May, it increased 2,000.

Cyprus’s Consumer Price Index, or CPI, increased 0.29% month-on-month in June due to increases in the prices of petroleum products, electricity, the statistical office reported. On an annual basis, the CPI rose 5.5% in June versus 4.9% in May and 1.9% in the previous year.

The Paris-based Organization for Economic Co-operation and Development reported that OECD area inflation rose to 3.9% year-on-year in May from 3.5% in April.

Rest of Europe

The Nationwide Building Society announced that UK house prices fell 0.9% month-on-month in June, less than half the rate of the previous month. House prices declined 2.5% in May and economists had expected 1% fall in June. On an annual basis, house prices declined 6.3% in June, following a 4.4% fall in May.

Weak domestic demand and high cost inflation lowered UK’s CIPS/Markit Purchasing Managers’ Index, or PMI, for the manufacturing sector to 45.8 in June from a downwardly revised figure of 49.5 in May. Economists were looking for a reading of 49.8. The current reading is the lowest since late 2001.

The Office for National Statistics announced that the net rate of return by private non-financial corporations in the UK was 15.3% in the first quarter, down from a revised estimate of 15.4% in the prior quarter. Manufacturing companies’ net rate of return was 4.9% and that of service companies stood at 21.1%.

Statistics Estonia reported that retails sales at constant prices declined 3% year-on-year in May. In April, retail sales had remained unchanged over the year-ago period. Month-on-month, retail sales were up 4% in May, bettering the 1% increase witnessed in April.

Results of the latest survey by the SVME Association of Purchasing and Materials Management and Credit Suisse showed that the Purchasing Managers’ Index, or PMI dropped to 54.9 in June from 55.7 in May. Economists were looking for a reading of 55. The latest reading is the lowest since August 2005. The reading continues to stay above its long-term average of 54.5 points and the neutral level of 50.

In other news, Statistics Sweden announced that new car registrations fell 14.4% in June from the prior year to 26,043 from 30,430.

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Posted in Categories: Economy, Eurozone, Forex, Releases, Stocks, UK.

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