Employment in the euro area grows in July and recorded its highest in 27 months.

The service sector activity reached the second strongest expansion since August 2007.

Employment in the euro area grows in July and recorded its highest in 27 months.

Employment in the euro area increased in July for the third consecutive month, and made its strongest pace in 27 months, according to the flash PMI index published by Markit.

In the manufacturing sector of the workforce growth recorded its strongest pace in 26 months and 27 months in the service sector. However, the rate of increase in job creation was well below the maximum that were observed before the start of the economic crisis.

The acceleration in the growth was recorded both in the service sector as in manufacturing, although it was the latter that led the recovery with increasing its production to third fastest pace since October 2006.

The growth of new orders picked up slightly compared to the lowest in four months that was recorded last month. This increase occurred in both sectors, although the manufacturing sector growth rate of new orders for exports slowed compared to the maximum in March.

Markit chief economist, Chris Williamson, says that this is a further indication that the export growth slows down while global trade cools down. Therefore, this data indicates that compared with increases in production and activity reflect improved conditions in domestic markets.

In the opinion of service sector providers, we do not expect further improvement, and confidence in its sector for the next twelve months.

For its part, inflation in purchase prices in the manufacturing sector slowed for the second consecutive month due to a reduction in the prices of many commodities.

In the service sector inflation slowed for the third month in a row and made the average inflation of costs in both sectors showed the weakest rise since February.

The prices charged remained virtually unchanged for the fourth straight month as higher prices of products were offset by lower fees for services.




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