According to S&P Global data, the composite PMI Index continued its decline in the second month, falling to 48.9. This was the lowest level since November. The expectation of economists surveyed by Bloomberg was 49.6.
The manufacturing PMI for the region fell from 43.4 to 42.7, the lowest level since the pandemic. The expectation was 43.5.
Service PMI, on the other hand, fell from 52 to 51.1. The expectation was 52.
Hamburg Commercial Bank Senior Economist Cyrus de la Rubia stated that the manufacturing sector continues to be a problematic area in the Euro Zone, while the service sector is still growing. The expert shared his prediction that the regional economy will contract further in the coming months.
Germany and France, the two largest economies in Europe, started the third quarter of the year with a contraction.
Manufacturing PMI in Germany fell to 38.8. This was the lowest level since 2020, when the pandemic began. The index has been below the 50 threshold for more than a year. under watching. The service sector PMI index also slowed down in the country in July.
In France, the manufacturing PMI fell to 44.5 and the services PMI to 47.4.
UK manufacturing PMI fell to 45 from 46.5 to a 38-month low. The services PMI fell from 53.7 to 51.5, and the composite PMI fell from 52.8 to 50.7.
The European Central Bank is expected to raise 25 basis points at its meeting on Thursday this week.