Eurozone economic growth plummets to 16-month low

By Ovunc Kutlu

ANKARA (AA) - Eurozone economic growth deteriorated sharply to a 16-month low in June, according to preliminary data by the S&P Global on Thursday.

The Flash Eurozone purchasing managers' index (PMI) composite output index fell to 51.9 in June, down from 54.8 in May, the US-based financial services company said in a report.

Manufacturing output contracted for the first time in two years, falling to 49.3 in June, from 51.3 the previous month, and recorded its lowest level in 24 months.

While a level above 50 indicates expansion, below 50 stands for contraction.

The service sector growth also slowed considerably, dropping to 52.8 in June, from 56.1 in May, to mark its lowest level since January.

"Both the stagnation of demand and worsening outlook were widely blamed on the rising cost of living, tighter financial conditions and concerns over energy and supply chains linked to the Ukraine war and ongoing pandemic disruptions," the report said.

"Factory output continued to be constrained by widespread supply shortages, often linked to the (ongoing Russian war on) Ukraine war and China’s lockdowns," it added.