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Friday saw the release of key survey data for European manufacturing sector and a statistical report that showed a greater-than-expected decline in German retail sales.

Markit Economics released the manufacturing sector's Purchasing Managers' Index survey reports for several European nations.

Eurozone

Indicating economic slowdown in Eurozone, the seasonally adjusted RBS/Markit Eurozone Manufacturing Purchasing Managers' Index, or PMI fell to five-year low in July. Final PMI data released by the Markit Economics showed that the seasonally adjusted PMI decreased to 47.4 in July from 49.2 in June. The reading was also down from the flash estimate of 47.5. The current reading is the lowest in five years.

A PMI reading above 50 indicates expansion in the sector, while below 50 suggests contraction.

The Italian manufacturing PMI declined to 45.3 in July from 46.9 in June, marking the lowest level since November 2001.

The PMI for France fell to 47.1 from 49.2 in June and hit its lowest level since July 2003. The French July manufacturing PMI was slightly below the flash reading of 47.3.

Similarly, the German manufacturing PMI dropped to 50.9 from 52.6 in June, reaching the lowest level since August 2005. However, it remained unchanged from the preliminary estimate.

Spain's PMI for the manufacturing sector stood at 39.2 in July, down from 40.6 recorded in June. The PMI reading has been declining for the past six months.

Ireland's NCB PMI for the manufacturing sector fell to a record low of 43.4 in July from 44.7 recorded in June. The decline largely mirrored a similar fall in the new orders index.

The Dutch NEVI/DPA PMI for the manufacturing sector decreased to 48 in July from 51.1 recorded in June, the latest survey results from Markit showed Friday. The July reading was the lowest since April 2005.

The manufacturing PMI for Greece continued to stay above 50 for the nineteenth month in a row in July and recorded a reading of 51.6.

A report from the Federal Statistical Office showed that German retail sales declined 3.9% year-on-year in real terms in June, much greater than the 0.8% slump expected by economists. The decline is in contrast to a 1% increase in May, revised up from the initially reported 0.7%. On a monthly basis, retail sales were down calendar and seasonally adjusted 1.4% in real terms in June, greater than economists' forecast for a 0.5% fall. In May, retail sales were up 0.5%, revised down from 1.3% reported earlier. During the first six months of the year, retail sales slid 0.8% in real terms.

Rest of Europe

UK's Insolvency Service said there were 3,560 compulsory liquidations and creditor's voluntary liquidations in total in England and Wales in the second quarter of 2008 on a seasonally adjusted basis. Compared to the first quarter, this was an increase of 11.6%. On an annual basis, it increased 15%.

The latest survey by the Markit Economics showed that the seasonally adjusted CIPS/Markit manufacturing PMI, fell to 44.3 in July from 45.8 in June. Economists had expected a reading of 45.5. The current reading is the lowest since December 1998.

The Polish ABN AMRO PMI for the manufacturing sector decreased to 46.4 in July from 47.8 recorded in June, the latest survey results from Markit showed. The July reading showed a marked contraction that was the fastest since late 2002.

The Turkey ABN AMRO PMI for the manufacturing sector rose for the fourth straight month in July, suggesting an easing pace of contraction, the latest survey results from Markit showed. The PMI reading stood at 49.4 in July, signaling the weakest rate of decline since last December.

Russia's manufacturing PMI fell for the fourth consecutive month in July and was only slightly higher than the no-change level, a survey done by VTB Bank Europe and Markit showed.

In July, the Czech ABN AMRO manufacturing PMI fell below the critical 50 no-change mark for the first time in five and a half years. The index now stands at 49.9.

The Czech Statistical Office announced that the ILO unemployment rate dropped to 4.3% in the second quarter. This was the lowest level since the end of 1996. Year-on-year, the rate decreased by 1.1 percentage points. In the first quarter, the jobless rate was 4.7%.

Statistics Denmark reported retail sales decreased 1.6% month-on-month in June and 6.3% over the previous year.

The Swedish economy expanded at an annual rate of 0.7% in the second quarter, significantly slower than 2.2% increase in the first quarter, the Statistics Sweden said. The statistical office noted that the seasonally adjusted GDP was unaltered compared with the first quarter of 2008. In the first quarter, the economy had grown 0.4%.

The Statistics Sweden also reported that Swedish new car registrations in June dipped 17.9% year-on- year to 19,203 from 23,399 of the year-ago period.

In Macedonia, consumer prices rose 9.5% year-on-year, while they fell 0.9% over the previous month.

In central bank news, the Central Bank of Russia raised its compulsory reserve requirements for banks, starting September 1. The central bank has announced that reserve requirement on non-resident banks in local and foreign currency will be hiked to 8.5% from 7%, while those for retail deposits to 5.5% from 5% and those for the other bank liabilities to 6% from 5.5%. The last increase in reserve requirement was on June 26. Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved