S&P Global's flash Composite Purchasing Managers' Index , seen as a good gauge of overall economic health, slumped to 51.9 in June from 54.8 in May."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.
A PMI covering the bloc's dominant services industry sank to 52.8 from 56.1, missing expectations for 55.5 and its weakest reading since April 2021. The input prices index rose to 78.3 from 77.4 and has only been higher twice in the survey's 24-year history - in March and April.It could still go higher in coming months so the European Central Bank is expected to raise its deposit rate above zero for the first time in a decade in September, a Reuters poll found.
"Inflows of new business have stalled, led by a slump in demand for goods and reduced demand for services from cash-strapped consumers in particular," Williamson said.