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- Eurozone economic growth falters as manufacturing downturn deepens - IHS Markit
Eurozone economic growth falters as manufacturing downturn deepens - IHS Markit
Eurozone economic growth edged lower in July as a deepening manufacturing downturn was accompanied by a slight moderation in service sector growth. Overall inflows of new work almost stagnated and business sentiment fell to its lowest since late-2014, causing companies to take an increasingly cautious approach to hiring. Selling prices meanwhile came under pressure amid tough competition and weak demand.
Having risen in the prior two months, the IHS Markit Eurozone Composite PMI fell to 51.5 in July from 52.2 in June to register the weakest monthly expansion of output for three months. Over the past six years, only four months have seen lower PMI readings.
The modest overall expansion masked a widening divergence between the manufacturing and service sectors to the largest since April 2009. While the service sector continued to record robust growth, albeit easing slightly compared to June, the manufacturing sector reported the steepest drop in production since April 2013.
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