Manufacturing activity contracted across the euro zone last month. That’s according to a closely watched survey released this previous Monday.
S&P Global’s final manufacturing Purchasing Managers’ Index fell to 49.8 in July – down from June’s 52.1.
It’s the first time the PMI has gone below 50 since June 2020 – anything below that figure represents a contraction.
S&P said Euro zone manufacturing faces an increasingly steep downturn – and it all adds to the risk of recession in the region. It blamed lower than expected sales, which had forced factories to stockpile unsold goods.