Eurozone ‘could exit recession’ in third quarter

Eurozone manufacturers are set to lead the bloc out of recession in the third quarter, after growth in the sector surged to a two-year high, though continued slowdown in China continues to loom as a threat to recovery, Telegraph reports.

An upturn in factory output drove a key gauge of eurozone business activity above the 50 mark which separates growth from contraction in July, giving a reading of 50.4, up from 48.7 in June.

This is the first time the purchasing managers’ index, which surveys thousands of services and manufacturing businesses across the single currency bloc, has signalled growth since January 2012.

Manufacturers led the way, reporting the largest monthly increase in output since June 2011. While the services sector continued to slow in July, the pace eased to its lowest in 18 months.