Fragile eurozone recovery exposed

Eurozone manufacturing and services activity weakened in June amid a further slowdown in France’s economy, underscoring the fragility of recovery in the 18-nation region.

A Purchasing Managers Index for both industries slipped to 52.8 in June from 53.5, Markit Economics said. That’s the 12th month the gauge has exceeded 50, the mark that signals expansion. A measure of Chinese manufacturing rose to a seven-month high.

The euro zone is struggling to sustain a recovery that received a bleak assessment from the International Monetary Fund on June 20. Earlier this month, the European Central Bank introduced a negative deposit rate, announced targeted loans to stimulate lending and held out the prospect of asset purchases to stoke growth and inflation.

“The pace of recovery is slowing down,” said Martin van Vliet, senior economist at ING Groep in Amsterdam. “The further weakening of the PMI vindicates the ECB’s recent decision to implement further monetary easing.”