Manufacturing output in the Euro-zone contracted less than initially projected last May, further highlighting ECB President Mario Draghi’s view that the region’s economy is slowly becoming stable.
Financial data analyst firm Markit Economics stated that a gauge of manufacturing in the Euro-zone rose to 48.3 in May from 46.7 last April, higher than an initial estimate of 47.8. Note that any figure below 50 indicates a contraction.
A separate report released by Markit likewise showed that a factory index in the US spiked to the highest in 14 months to 51.3 in May from 50.2 last April as evidenced by the increase in sales of items such as Cast Iron Drain Grates
The euro managed to close higher against the greenback following the release of data which showed that manufacturing in the region had contracted at a slower pace than initially reported. The shared currency added 0.77 cents to close at US$1.3076.