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- Euro zone composite PMI a little lower than expected in July
Euro zone composite PMI a little lower than expected in July
The IHS Markit Eurozone Composite PMI fell to 54.3 from 54.9 in June, according to the July flash reading (which is based on approximately 85% of usual replies). The latest reading was the secondweakest since November 2016, only narrowly beating May's recent low.
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said: "The flash PMI suggests the eurozone started the second half of the year on a relatively soft footing, indicative of GDP growth slowing in the third quarter. The July reading is consistent with quarterly GDP growth of 0.4%, down from a 0.5% expansion indicated by the surveys for the second quarter. "The renewed slowdown comes as a disappointment, confirming suspicions that June's rebound was temporary, largely due to businesses in some countries making up for an unusually high number of public holidays in May. "Given the waning growth of new business and further slide in business optimism, the outlook has also deteriorated, notably in manufacturing, where the surveys saw worries about trade wars intensify markedly in July".
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