Eurozone Growth Slows as PMI Falls to 22-Month Low of 52 in June

Eurozone PMI Manufacturing fell to a 22-month low of 52 in June, slowed significantly this month, and came in below market estimates of 53.9 as consumers opted to stay at home and defer purchases to save money in response to rising costs.

S&P Global Eurozone Manufacturing PMI decreased from 54.6 in May to 52 in June.

Output declined for the first time in two years, and the rate of decline could accelerate in July due to a drop in new orders. June was the steepest drop in new orders since May 2020.

The flash PMI composite output index fell to 51.9 in June from 54.8 a month earlier, the lowest in 16 months. Meanwhile, PMI services slipped from 56.1 in May to 52.8 this month, hitting a 5-month low.

“Euro zone economic growth is showing signs of faltering as the tailwind of pent-up demand from the pandemic is already fading, having been offset by the cost of living shock and slumping business and consumer confidence,” said Chris Williamson, chief business economist at S&P Global.

Manufacturing expectations for the year ahead worsened markedly, down to the lowest since May 2020.