LONDON (Reuters) – Eurozone activity growth virtually came to a standstill in June as the slowdown in manufacturing deepened while expansion in services was weaker than expected, according to data. S&P Global’s preliminary PMI survey results released on Friday.
The composite index, which combines elements of the manufacturing sector index, fell to 50.3, its lowest level in five months, against 52.8 in May and 52.5 for the consensus.
This figure is barely above the 50 mark that separates growth from contraction.
“After two consecutive quarters of contraction, the risk of a further fall in euro area GDP in the second quarter increased in June, due in particular to weak activity in the service sector in France”, a said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
Aggregate demand fell for the first time since January and the composite new business index fell from 50.3 to 48.3.
The services sector index fell from 55.1 to 52.4. The Reuters consensus gave it at 54.5.
For industry, the contraction in the HCOB PMI index amplified, falling from 44.8 to 43.6, its lowest since May 2020. The index measuring manufacturing production, which feeds the composite PMI, fell from 46.4 to 44.6.
The drop came as factories lowered prices for the second straight month as production costs fell at the fastest rate since mid-2009.
(Laetitia Volga, edited by Blandine Hénault)
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