Key data released last week show that hopes of a recovery in the euro zone economy for the second half of this year, after stagnation for 2023 and the first six months of this year, have taken a significant hit.
The purchasing managers’ index (PMI) compiled by S&P Global fell to a five-month low of 50.1, barely above the level of 50 which is the boundary between expansion and contraction. This was mainly as a result in weaker growth in services and falls in manufacturing in Germany, the region’s largest economy.
The PMI for services fell from 52.8 to 51.9 while that for manufacturing went from 45.8 to 45.6.
In its report on the PMI results, the Financial Times (FT) noted that the results for Germany were “noticeably weaker than forecast.”
“The German PMI reading fell from 50.6 to a four-month low of 48.7, signalling a contraction of the country’s business activity. German…
