Eurozone factory output grows

A boost for factory output in the eurozone. That’s what business surveys reflected for activity during July which grew faster than previously thought.

It eased slightly from June’s 14 month record pace as rising prices kept new orders in check.

Italy enjoyed its strongest expansion for over four years and the Netherlands and Spain showed healthy growth. But French factories slipped back into contraction.

And in what was a fraught month for the currency union as Greece brushed with bankruptcy the country’s survey signalled its steepest downturn in its 16-year history.

Markit’s final Eurozone Manufacturing Purchasing Managers’ index was 52.4 comfortably above the 50 level which separates growth from contraction.

Markit’s chief economist predicted growth will pick up again now that Greece, “has jumped its latest hurdle in the ongoing debt crisis,” said Chris Williamson.