Eurozone Business Growth Slightly Disappoints

Forex News

According to the survey, Eurozone business growth has slightly slowed in July, but stayed firm anyway. IHS Markit's EuroZone Composite Final PMI dropped from 54.9 to 54.3.

Rob Dobson (a director at IHS Markit) noted: "The final PMI numbers confirm the euro area economy started quarter three on a softer footing," and: "The outlook seems to be turning into a straight choice between the upturn being sustained at its current subdued pace or rising headwinds reining in growth further during the months ahead. On this front, downside risks are more prevalent."

A sub-index, that accounts for new orders hit an almost 2-year minimum. The future output index, measuring optimism, declined to a 20-month minimum at 63.1. Companies raised headcount at a slower pace and formed backlogs of work at the lowest pace in one and a half years.

The final PMI for the Eurozone services industry lowered from 55.2 to 54.2, missing the expectation. Services companies saw a sluggish build up in new work, as the sub-index declined from 54.9 to its minimum of 54.1.