Euro zone productivity growth steadies

Euro zone productivity growth steadied in June after months of slowdown, according to indices compiled by researchers NTC for…

Euro zone productivity growth steadied in June after months of slowdown, according to indices compiled by researchers NTC for consultancy Deloitte.

The gauge of euro area output per worker, compiled from responses to NTC's poll of 5,000 firms across the European Union, peaked in February but had retreated steadily to an eight-month low in May before nudging up again last month.

NTC said its euro zone productivity index rose to 55.7 in June from May's 55.6 and remains well above a four-year average of 53.0.

As with NTC's Purchasing Managers' survey, a reading above 50 indicates improvement over the period and below 50 is a deterioration. The series dates back to 1998 and the monthly euro zone index has now been above 50 for 30 successive months.

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The euro zone data reflects responses from companies in eight countries and showed French productivity growth leapfrogging that in Germany last month - registering a reading of 57.1 in June compared with 56.3 in May and a German reading of 56.6. The German index was down slightly from 56.8 in May.

Italy also declined and continued to be the laggard of the big three euro zone economies in June - falling to 53.3 from 54.0 in May.

Elsewhere, the British productivity index fell to 55.2 in June from 55.6 previously as recruitment continued to pick up.