Eurozone manufacturing activity expands to 6-month high in June

Manufacturing business activity in the Eurozone expanded during June, jumping to its six-month high, driven by new orders and output that encouraged companies to hire more people to meet demand.

The Markit PMI for the euro zone climbed to 52.8 from May's 51.5, higher than the earlier flash reading of 52.6, where anything above 50 indicates growth. A sub-index measuring output that feeds into a composite PMI due on Tuesday jumped to 53.9 from 52.4. The flash estimate was 53.8, data released by Markit, showed Friday.

"Euro area manufacturers enjoyed their strongest growth so far this year in June. However, the data were collected prior to the UK EU referendum result, so any Brexit impact is yet to be seen in the PMI," said Chris Williamson, Chief Economist, Markit.

Meanwhile, the currency bloc’s economy grew 0.6 percent in the first three months of the year, but the pace is expected to have weakened in the next quarter (April-June), Reuters reported. Further, consumer prices in the Eurozone rose just 0.1 percent in June, official data showed on Thursday.

However, the discounting of interest rates by the European Central Bank helped boost new orders at the fastest pace this year. The sub-index rose to 53.6 from 51.7.