Eurozone PMI Services was finalized at 53.2, down from 53.3, and June’s 53.6. PMI Composite was finalized at 51.5, down from 52.2. Looking at the member states, Germany PMI Composite dropped to 50.9, 73-month low. Italy hit 51.0, 4 -month high. Spain dropped to 51.7, 68-month low. France hit 51.9, 2-month low.
Chris Williamson, Chief Business Economist at IHS Markit said:
“The service sector continued to sustain the expansion of the overall eurozone economy at the start of the third quarter, but there are signs that the scale of the manufacturing downturn is starting to overwhelm.
“Trade war worries, slower economic growth, falling demand for business equipment, slumping auto sales and geopolitical concerns such as Brexit led the list of business woes, dragging manufacturing production lower at its fastest rate for over six years. While the service sector has helped offset the manufacturing downturn, growth also edged lower among service providers in July, meaning the overall pace of expansion of GDP signalled by the PMI has slipped closer to 0.1%.
“The main source of expansion currently appears to be the consumer, in turn buoyed by the relative strength of the labour market. However, with the July survey indicating the weakest jobs gains in over three years, there are signs that this growth engine is also losing impetus, and adding another headwind to the economy for the coming months.”
