However, economic uncertainty remains, notably due to the delta coronavirus variant which is leading to higher infections, and also labor market shortages — even in nations with a relatively high unemployment rate.The flash France composite output index came in at 57.1 in June, from 57.0 in May, representing a 11-month high. The latest lifting of Covid-19 restrictions contributed to a higher number of sales.
Joe Hayes, senior economist at IHS Markit said: "The French economy has enjoyed its best quarterly performance since early 2018." "With vaccination rates on the rise, survey data suggest that firms are becoming more confident that the stage is set for an economic recovery," he said, while adding that "the recovery could run into some speed bumps if the supply-side is what is ultimately holding the economy back."
Meanwhile, the flash Germany PMI composite output index reached 60.4 in June from 56.2 in May — hitting a 123-month high. "The further loosening of Covid-19 restrictions has given an additional boost to the recovery of the German economy, with the 'flash' PMI rising steeply to its highest for over a decade. And with containment measures set to be lifted further in July, this strong momentum is on course to carry over to the third quarter," Phil Smith, associate director at IHS Markit, said in a statement.
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