Business growth in the Eurozone slowed in June as the industrial contraction worsened and its dominant services sector barely expanded, indicating a challenging end to the second quarter.
In June, the flash composite Purchasing Managers’ Index for the Eurozone fell to 50.3 from 52.8 the month before. This was far lower than the median forecast of 52.5. A number above 50 indicates growth, whereas a reading below 50 indicates decline.
According to S&P Global’s latest HCOB flash PMI survey data, “Eurozone business output growth came close to stalling in June,” indicating “renewed weakness in the economy after the brief growth revival recorded in the spring.”
“Although energy and supply chain worries have eased since late last year, June has seen a further escalation of concerns over demand growth, and in particular the impact of higher interest rates, and the resulting possibilities of recessions both in domestic markets and further afield.”
