By Tuba Sahin
ANKARA (AA) - Euro area economic activity contracted for the first time since February 2021, as the flash composite Purchasing Manufacturing Index (PMI) fell below the neutral level of 50 in July, preliminary estimates showed on Friday.
Flash Eurozone Composite PMI fell to 49.4 in July with output and new orders both falling for the first times since the COVID-19 lockdowns of early 2021, said US-based financial services company S&P Global.
The rising cost of living continued to erode the tailwind of pent-up demand from the pandemic, it noted.
The Flash Eurozone Services PMI Activity Index decreased from 53 in June to 50.6 in July, a 15-month low.
The flash reading for the manufacturing PMI fell to its lowest level in 25 months, hitting 46.1 in July.
Concerns over weakening demand were exacerbated by energy, supply, and inflation worries to push business expectations lower, and also cause a steep drop in input buying and a pullback in hiring, it noted.
Jobs growth moderated for a second consecutive month to a 15-month low as firms took more cautious approaches to hiring amid the deteriorating demand environment.