Business activity in the Eurozone decreased in July, hindered by a decline in industry and a slowdown in the services sector, a survey by S&P Global revealed on Thursday.
The Purchasing Managers’ Index (PMI) in the Eurozone’s private sector fell by 1.3 points in July compared to June, to 48.6 points, the lowest level in eight months, according to a survey conducted for S&P Global by Hamburg Commercial Bank (HCOB).
Values below 50 points indicate a decline in activity.
– The Eurozone has had a poor start to the second half of the year – concluded the chief economist of Hamburg Commercial Bank (HCOB) Cyrus de la Rubia.
– The main reason for the decline in activity is the reduction in the manufacturing sector, but growth in service activities has also slowed, reducing support for the economy as a whole – added De la Rubia.
Activity in the industry fell the most since the beginning of the pandemic, according to a separate report by S&P Global published earlier this week. In the services sector, growth was the weakest in six months.
Indicating weak chances for a quick change in trend, demand for services fell for the first time this year, reflecting the pressure of inflation and higher credit costs on already indebted consumers, HCOB found.
