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Purchasing Managers Index: Europe: Difference between revisions
Purchasing Managers Index: Europe (view source)
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=== July 2023 === | === July 2023 === | ||
After stagnating in June, the eurozone economy started the third quarter with the fastest contraction in business activity since November last year | After stagnating in June, the eurozone economy started the third quarter with the fastest contraction in business activity since November last year. July’s contraction was brought about by a deepening downturn in the manufacturing sector and a near-stalling of services output. There was also notable weakness with respect to demand as total new orders fell again and to the quickest extent in nine months. Export performance was a considerable drag as demand from foreign clients fell at the steepest rate since the start of the COVID-19 pandemic over three years ago. | ||
Falling new business led to a greater reliance on backlogs of work to help sustain activity levels where possible. Backlogs fell for the fourth month in a row and at a faster pace. Employment growth meanwhile slowed and business confidence weakened. A further cooling of price pressures was also recorded, although this continued to be heavily driven by the manufacturing sector as services companies registered still-elevated rises in both their costs and prices charged. | Falling new business led to a greater reliance on backlogs of work to help sustain activity levels where possible. Backlogs fell for the fourth month in a row and at a faster pace. Employment growth meanwhile slowed and business confidence weakened. A further cooling of price pressures was also recorded, although this continued to be heavily driven by the manufacturing sector as services companies registered still-elevated rises in both their costs and prices charged. | ||
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==== Services ==== | ==== Services ==== | ||
The HCOB Eurozone Services PMI Business Activity Index fell for a third month running in July, signalling a sustained growth slowdown in the euro area’s dominant service sector. At 50.9, the index signalled a near-stalling of activity levels in July and compared with a modest upturn in June (index recorded 52.0). | The HCOB Eurozone Services PMI Business Activity Index fell for a third month running in July, signalling a sustained growth slowdown in the euro area’s dominant service sector. At 50.9, the index signalled a near-stalling of activity levels in July and compared with a modest upturn in June (index recorded 52.0).<ref>https://www.pmi.spglobal.com/Public/Home/PressRelease/5729cc874c664210aeca4d1c6320fa56</ref> | ||
* July survey data revealed a renewed reduction in new business intakes at service providers, marking the first contraction in demand for eurozone services since the end of last year. The decline, albeit only modest, was the quickest for eight months. Orders received from export markets also slumped further, July data showed. | * July survey data revealed a renewed reduction in new business intakes at service providers, marking the first contraction in demand for eurozone services since the end of last year. The decline, albeit only modest, was the quickest for eight months. Orders received from export markets also slumped further, July data showed. | ||
* The fall in new business led firms to turn their focus to their backlogs of work. Volumes of outstanding business fell for the first time since January. Employment growth was sustained nevertheless, continuing the current sequence of job creation that began two-and-a-half years ago. That said, the rise in staffing levels was the slowest in five months. | * The fall in new business led firms to turn their focus to their backlogs of work. Volumes of outstanding business fell for the first time since January. Employment growth was sustained nevertheless, continuing the current sequence of job creation that began two-and-a-half years ago. That said, the rise in staffing levels was the slowest in five months. | ||
== References == | |||