Tuesday was marked by Spanish and Italian Services PMI figures were released. Spanish Services PMI data was released from Eurozone yesterday. Faster rises in activity and new business helped lead to the sharpest increase in employment at Spanish service providers for almost nine years at the end of the second quarter. The rate of input cost inflation was unchanged from that seen in May, while output prices continued to rise marginally. The headline seasonally adjusted Business Activity Index rose to 56.0 in June from 55.4 in the previous month, signalling a sharp monthly expansion of business activity, and the fastest since last November. Growth of activity has now been recorded in each of the past 32 months.

Business activity returned to growth across Italy’s service sector at the end of the second quarter, after falling slightly and for the first time in 17 months during May. There was also positive news on the employment front, with job creation reaching the fastest in 2016 so far. However, survey data pointed to a squeeze on margins, as cost inflation accelerated to a 13-month high but prices charged decreased. The headline Markit Business Activity  registered 51.9 in June, up from May’s 49.8. That signalled a renewed upturn in service sector business activity, albeit with the rate of expansion being only moderate.

Wednesday was marked by German Factory Orders figures. As reported by the Federal Statistical Office (Destatis) on the basis of provisional data, the manufacturing sector saw new orders unchanged in real terms adjusted for seasonally fluctuations and working-day variations in May 2016 compared with April 2016. For April 2016, revision of the preliminary outcome resulted in a decrease of 1.9% compared with March 2016 (primary –2.0%). Price-adjusted new orders without major orders in manufacturing had increased in May 2016 a seasonally and working-day adjusted 0.5% on April 2016.

On Thursday from Eurozone, German Industrial Production data was published. In May 2016, production in industry was down by 1.3% from the previous month on a price, seasonally and working day adjusted basis according to provisional data of the Federal Statistical Office (Destatis). In April 2016, the corrected figure shows an increase of 0.5% (primary +0.8%) from March 2016. In May 2016, production in industry excluding energy and construction was down by 1.8%.

This week markets will be looking at:

Final CPI (Friday 11:00)