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Eurozone Private Sector Shrinks In July

7/24/2012 4:11 AM ET

The Eurozone private sector economy contracted for the tenth time in the last eleven months, with the rate of decline unchanged on June, Markit Economics said Tuesday.

The flash composite Purchasing Managers' Index remained unchanged at 46.4 and matched the consensus forecast. A reading below 50 suggests contraction in the sector.

While the manufacturing PMI fell to 44.1 from 45.1 in June, the services PMI rose to 47.6 from 47.1. Economists were forecasting the manufacturing index to rise to 45.2 and the services PMI to remain stable at 47.1.

"The flash PMI for July suggests the euro area downturn showed no signs of letting up at the start of the third quarter and is consistent with GDP falling at a quarterly rate of around 0.6%, which is similar to the rate of decline we expect to see for the second quarter," Chris Williamson, chief economist at Markit said.

by RTT Staff Writer

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