Eurozone growth decelerates in June to lowest in 16 months

Tuesday, 05. July 2022 10:03

The Eurozone Purchasing Managers' Index (PMI) Composite Output Index saw a monthly decline in June, standing at 52.0, down from 54.8 in May and the lowest level in 16 months, S&P Global revealed in its report published on Tuesday.

The final Eurozone Services Business Activity Index also fell on a monthly level to 53.0, marking a five-month low. According to the report, the June results were dragged down by the first drop in manufacturing output in two years and a slower pace of increase in services activity.

"The sharp deterioration in the rate of growth of eurozone business activity raises the risk of the region slipping into economic decline in the third quarter," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "The June PMI reading is indicative of quarterly GDP growth moderating to just 0.2%, with forward-looking indicators such as the survey's new orders and business expectations gauges pointing to falling output in coming months."

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