Boost for eurozone recovery hopes

Eurozone economic activity rose in August for the first time in 15 months, according to an influential survey. The latest Purchasing Managers' Index (PMI) figure rose to 50.4, raising hopes that the eurozone could soon emerge from recession. Any score above 50 shows an increase in economic activity. This is the first time the index has been above this benchmark score since May 2008. But separate figures show that retail sales in the eurozone fell in July.

Also on Thursday, the European Central Bank kept its main interest rate on hold at 1%. The disappointing retail sales figures also cast doubt on a quick recovery. Sales in the 16 countries that use the euro fell by 0.2% in July compared with the previous month, defying expectations of a rise in consumer spending. Weak sales of food, drink and tobacco, down 0.5%, caused the overall drop, the official Eurostat figures showed. There was no change in sales of other goods.
3rd September 2009, www.bbc.co.uk

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