Economic output in the Eurozone contracted at its fastest rate in eight months in July, with manufacturing declines leading the way, according to a major poll released on Monday.
The HCOB flash Eurozone composite Purchasing Managers’ Output Index, which measures output across the economy, fell to 48.9 in July from June’s 49.9.
After five months of growth, production volumes dropped for the second month in a row, and the decline was more substantial than the little slowdown experienced at the end of the second quarter.
According to HCOB, “a steepening loss of new orders in the goods-producing sector,” which saw one of the worst decreases since 2009, was accompanied by the first downturn in new orders for services in seven months.
A separate PMI for services activity fell from 52.0 to 51.1. That was lower than the expected slowdown to 51.7 predicted by economists.
Meanwhile, the manufacturing PMI fell from 43.4 to 42.7, missing the consensus estimate of 43.6.