EU Economy Slows Down in Q3

Flash PMI survey data indicated that the eurozone economy lost momentum again at the start of the third quarter after a brief rebound in June. Although the rate of growth remained relatively robust in July, weakened new order inflows and reduced business expectations of future activity added to the downbeat picture. Price pressures meanwhile remained elevated, albeit cooling slightly compared to June.

The IHS Markit Eurozone Composite PMI fell to 54.3 from 54.9 in June, according to the July flash reading (which is based on approximately 85% of usual replies). The latest reading was the second- weakest since November 2016, only narrowly beating May’s recent low.

Manufacturing output grew at a rate unchanged on June’s 19-month low, while business activity growth in the service sector pulled back from June’s four- month high, registering the second-slowest expansion seen in the past year-and-a-half.

Via Markit

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza