Eurozone's economy shows barely any growth
The economy in the Eurozone has, according to a survey, only barely stayed in the growth zone in July. The Purchasing Managers' Index for sales fell by 0.8 points to 50.1 points, as financial services provider S&P Global announced on a Wednesday. This barometer, in which purchasing managers of companies assess business conditions, is closely watched on financial markets as a leading indicator for economic development. A value above 50 indicates growth. Experts surveyed by news agency Reuters had expected a rise to 51.1 points.
"Brake factor number one" was again industry, according to S&P Global. Here, production was reduced at the highest rate since the beginning of the year. Only the renewed growth of the service sector prevented the Eurozone from slipping into the red. However, the service providers also reported the smallest business growth since March.
The two largest economies in the Eurozone again performed below average: The German economy shrank for the first time since April. And France's economy went down for the third time in a row. The other countries surveyed reported growth again, but the growth rate was so low here as it had not been since January.
I was hoping for stronger economic growth in July, particularly in the European Room, but the unexpected decrease in the PMI resulted in a barely maintained growth rate. My personal economy also seemed to follow this trend, experiencing modest growth during this period.
