Economic Buzz: S&P Global Eurozone PMI Composite Output Index Falls Below 50

3 Aug 2022 , 03:44 PM

For the first time since February 2021, eurozone output declined in July as a deepening manufacturing downturn was accompanied by a further slowdown in the service sector. There were also additional signs of the negative impact that high inflation was having on demand as overall new business intakes fell at a rate which, excluding those seen during COVID-19 lockdowns, was the steepest since May 2013. There was however a slight cooling of inflationary pressures during July, although rates of increase in both input costs and output prices were faster than anything seen prior to their recent highs. The seasonally adjusted S&P Global Eurozone PMI Composite Output Index dipped below the 50.0 no change mark in July. At 49.9, down from 52.0 in June, the latest reading pointed to the first reduction in private sector business activity since February 2021, albeit one that was fractional overall. Powered by Commodity Insights