Euro zone business activity shrinks more than expected in July, reigniting recession fears

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

The decline was broad-based with the euro zone’s two biggest economies – Germany and France – both in contractionary territory

The survey also indicated the European Central Bank’s sustained campaign of interest rate rises is starting to take its toll on consumers and denting the services sector.

That was below the 50 mark separating growth from contraction and lower than all expectations in a Reuters poll which had predicted a modest dip to 49.7. Activity in Germany, Europe’s largest economy, contracted in July, increasing the likelihood of a recession in the second half. Indebted consumers feeling the pinch from rising borrowing costs and prices cut back on spending, and the services new business index went below break-even for the first time in seven months.

The decline came despite manufacturers running down backlogs of work and cutting their prices. Factories benefited from a sharp drop in input costs due to falling demand for materials and improved supply.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines