Euro zone services business growth at a standstill, July PMI shows

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France services sector boosted by Olympics and UK by its general election but picture elsewhere is of slowing growth

Olympics boost for Paris: Belgian cyclist Remco Evenepoel celebrates as he crosses the finish line under the Eifel Tower to win the men's road race. Photograph: Dirk Waem / Belga Mag / Belga via AFP via Getty ImagesGrowth in euro zone business activity stalled last month as a stuttering expansion in the bloc’s dominant services industry was compounded by a deeper downturn in the manufacturing sector, a survey showed on Monday.

In the UK, a similar survey found that growth had picked up last month, as firms recorded the strongest levels of demand for over a year.Experts said that there was a slight rebound following the result of the general election, which increased certainty for firms. Within Europe, France’s dominant services sector picked up in July – to 50.1 from 49.6 in June – helped by business from the Olympic Games. However, in Germany, the growth slowed for the second consecutive month in July – to 52.5 from 53.1 – in a further sign that Europe’s biggest economy is losing steam.“If the service sector stalls, the whole economy could slip into a recession because manufacturing continues to shrink sharply,” Mr de la Rubia said.

 

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