Business growth in the eurozone slowed further last month, according to a survey in which forward-looking indicators suggested the region could slip into recession this quarter as the cost-of-living crisis keeps consumers wary.
The S&P Global composite PMI fell to a 16-month low of 52 points in June from 54.8 points in May, marginally higher than initial estimates of 51.9 points.
“The sharp deterioration in the rate of growth of the eurozone’s business activity increases the risk that the region will fall into recession in the third quarter,” said Chris Williamson, chief economist at S&P Global.
“The manufacturing sector is already in contraction for the first time in two years, and the services sector has suffered a notable loss of growth momentum amid the cost of living crisis. Household spending on non-essential goods and services has come under particular pressure due to the surge in prices”, he said.
The services PMI fell to 53 from 56.1 points, marginally higher than estimates for 52.8 points.
Meanwhile, although inflationary pressures eased somewhat last month, the producer price index in services remained close to an all-time high of 63.2 points, down from 64.6 points in May.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
