For the first time since early last year, the Euro zone’s business activity contracted in July as consumers reined in spending amidst inflationary pressure which eats into the disposal income of families.
In particular, S&P Global’s final composite Purchasing Managers’ Index printed a shrink, it declined to a 17-month low of 49.9 in July from June’s 52.0, albeit ahead of a preliminary 49.4 estimate.
“Soaring inflation, rising interest rates and supply worries – notably for energy – have led to the biggest drops in output and demand seen for a almost a decade, barring pandemic lockdown months,” Chris Williamson, chief business economist at S&P Global said.
New business index also printed a decline from 50.0 to 47.6, the lowest level since November 2020.
Meanwhile, A PMI covering the bloc’s dominant services industry fell to 51.2 from 53.0, although that was ahead of the 50.6 flash estimate.
