Eurozone’s Strongest Service Sector Growth Since 2007

The service sector in the eurozone, including hospitality, retail, aviation and tourism, showed the strongest growth in June since July 2007.

According to the British market researcher Markit, the easing of the corona measures and the economic recovery from the corona crisis are taking full advantage.

The Purchasing Managers Index, which reflects activity, has now pointed to more substantial growth in the services sector for three months in a row. This is because the corona pandemic previously hit that sector the hardest due to the lockdowns and travel restrictions.

But now that vaccination campaigns are gaining momentum, and restrictive measures are largely being phased out, the sector is rebounding strongly. This also increases the demand for personnel in the service sector. As a result, the confidence of companies in the future is high, according to Markit.

Markit previously reported that the euro area industry showed record growth in June despite supply problems due to, for example, shortages of raw materials.

As a result, economic activity, i.e. industry and services combined, grew last month at the strongest pace in fifteen years in the euro area countries. The region’s economy is running at full speed, says Markit economist Chris Williamson.

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