Eurozone Private Sector Growth At 3-Month Low

The euro area private sector expanded at the slowest pace in three months in July as a deepening manufacturing downturn was accompanied by a slight moderation in service sector growth, data from IHS Markit showed Wednesday.

The composite output index fell to 51.5 in July from 52.2 in June. The reading was also below forecast of 52.1.

The services Purchasing Managers’ Index slid to 53.3 from 53.6 in the previous month. Economists had forecast the indicator to fall to 53.3.

The manufacturing PMI declined to 46.4 from 47.6 a month ago. The score hit a 79-month low. The reading was forecast to remain unchanged at 47.6.

The pace of GDP growth looks set to weaken from the 0.2 percent rate indicated for the second quarter closer to 0.1 percent in the third quarter, Chris Williamson, chief business economist at IHS Markit said.

“With growth slowing, job creation fading and price pressures having fallen markedly compared to earlier in the year, the survey will give added impetus to calls for more aggressive stimulus from the ECB,” Williamson added.

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