Daily Economic Outlook: 24th July, 2015

The euro area purchasing managers indices have remained relatively resilient in recent months, even as the Greek crisis intensified. In fact, both manufacturing and services PMIs improved in June, leaving the average for Q2 slightly higher than in Q1. The survey evidence therefore indicates that there has been limited spillover effects from the events in Greece, as the weaker euro, lower oil price and easier credit conditions have supported activity. 

For July, Lloyds Bank notes a small downward correction  for the manufacturing index to 52.3 from 52.5 and the services index to 54.2 from 54.4. These levels remain consistent with a moderate pace of growth and a continuation of ECB's asset puchase programme. As usual, French and German figures will be released ahead of the euro area. 

BBA loans for house purchases in the UK could show a sixth consecutive monthly increase, indicating that housing market momentum is picking up, aided by falling mortgage rates. More comprehensive Bank of England mortgage approvals figures will be released next week. In the US, the Markit PMI manufacturing survey and new home sales are due, but the main focus will be next week's FOMC meeting, durable goods orders and the advance estimate of Q2 GDP, says Lloyds Bank.