Eurozone business growth stalled in June as manufacturing continued to decline and service industries barely expanded, HCOB’s flash Composite Purchasing Managers’ Index (PMI) found.
The index, compiled by S&P Global, fell from 52.8 in May to 50.3 in June. This is slightly above the 50 mark that separates growth from contraction, thereby signaling a slowdown in economic growth across the region.
“After eurozone GDP fell for the second time in a row in the first quarter, the probability has increased somewhat that the GDP change will again carry a negative sign in the current quarter,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank explained.
The composite new business index fell from 50.3 to 48.3, signaling that overall consumer demand across the eurozone has dropped. The services industry index declined to 52.4 from 55.1. That fell below a Reuters poll expectation of 54.5.
Manufacturing activity was the worst-hit gauge of business growth being measured, falling from 44.8 to 43.6 to extend its decline since last July. This is the lowest level since May 2020, at the height of the COVID pandemic.