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.
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