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Eurozone sees rise in trade surplus in June

Eurozone

Eurozone recorded a significant increase in trade surplus with the rest of the world in June compared to May.

According to data published by the European Union Statistics Office (Eurostat), exports grew faster than imports during the same month.

Eurostat said that the 19-nation euro zone posted a surplus of 18.1 billion euros ($21.2 billion) in July, up from a trade surplus of 7.5 billion euros in May.

Eurozone

The bloc exported goods worth 209.9 billion euros in June, an increase of about 22 percent compared to May.

The bloc’s import bill amounted to 191.8 billion euros, up nearly 17 percent from May.

The surplus decreased slightly compared to June 2020, when it amounted to 20 billion euros. Compared with the same period last year, imports grew faster than exports.

Business activities

On the other hand, business activities in Eurozone witnessed a remarkable improvement in July, as it recorded the fastest growth rate in 15 years, according to a data survey.

The cancellation of more strict Coronavirus-related measures and the acceleration of the vaccination campaigns have led to the return of life to the services sector that dominates the bloc.

In contrast, supply chain strikes and labor shortages mean input prices are rising at the fastest pace in more than two decades.

Fears of additional restrictions to contain the fast-spreading Delta variant of the coronavirus also fueled optimism.

The final reading of the IHS Markit Purchasing Managers’ Index, considered a good gauge of the economy’s health, rose to 60.2 last month from 59.5 in June.

This is the highest level since June 2006, and well above the 50-point level separating growth from contraction, although it is slightly below the initial reading of 60.6.

“Europe’s service sector is springing back into life,” said Chris Williamson, chief business economist at IHS Markit.

“Easing virus restrictions and further vaccination progress are boosting demand for a wide variety of activities, especially in the tourism, travel and hospitality sector,” he added.

With the opening of more services activities, the sector’s PMI rose to 59.8 from 58.3 in June. This is lower than the initial estimate of 60.4 but still the highest final reading since June 2006.

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