According to an influential survey, Europe’s manufacturing and service provider sectors both shrank in July, the 11th consecutive month of contraction.

The July Markit purchasing managers index (PMI) came in at 46.5 in July from 46.4 in June.   The services sector on its own managed to rise to 47.9 in July, from 47.1 in June.  Both the eurozone’s manufacturers and its service providers reported lower levels of output in July.   Markit said that the volume of new work taken on by manufacturers and service providers in the eurozone shrank more sharply than expected, with service providers seeing new business demand shrinking in July at its fastest pace in three years.   Eurozone service sector businesses said they did not hold out any hope of seeing any growth in 2012.    Even the rate of growth among German businesses was its slowest in three years.

Meanwhile, official data from statistics bureau Eurostat found that retail sales for the 17 countries using the euro rose by 0.1% in June, compared with May.   Ireland, the United Kingdom and Romania saw the largest monthly decreases.

Credit: onrec.com