Growth in business activity in the Eurozone almost halted this month. The decline in manufacturing had deepened, and service sector activity had barely increased. That’s according to preliminary results of a survey of purchasing managers released today by S&P Global.
The aggregate purchasing managers’ index (PMI), which tracks activity in both industry and services, fell to a five-month low of 50.3 points from 52.8 points in May. If the index is above the fifty-point threshold, it signals an increase in activity. In a Reuters poll, analysts predicted the index would fall to 52.5 points this month.
“After the euro area’s gross domestic product (GDP) fell for the second consecutive quarter in the first quarter, the probability that the change in GDP will be negative again in the current quarter has increased somewhat,” said Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank (HCOB).
Overall demand fell for the first time since January
Overall demand fell for the first time since January. The aggregate index of new orders fell to 48.3 points this month from 50.3 points in May.
The services sector PMI fell to 52.4 points from 55.1 points. Analysts, on average, estimated it would fall only slightly to 54.1 points.
Manufacturing activity deepened its decline this month. Its index fell to 43.6 points from 44.8 in May, the lowest since May 2020.
Source: CTK
