According to a poll released on Tuesday, economic activity in the eurozone fell for the second month in a row in August, as the cost of living problem prompted consumers to limit spending and supply constraints hurt manufacturers.
The Standard & Poors Composite Purchasing Managers Index, a solid indicator of macroeconomic strength, fell to 49. 2 in August from 49. 9 in July, slightly higher than the consensus prediction in a Reuters poll for a 49. 0 drop.
A rating of less than 50 signals decline, and the preliminary August forecasts are the lowest since February 2021, with a Reuters poll last month forecasting 0.2% growth this quarter.
The PMI, which includes the region’s key services sector, dipped to 50. 2 from 51. 2, slightly over the line between growth and contraction and below the 50. 5 predicted by Reuters.
Manufacturing activity decreased again last month, with the manufacturing PMI dropping to 49.7 from 49.8.
The indicator, which gauges production and feeds the composite PMI, reported 46. 5 compared to 46. 3 in July, the lowest level since June 2020.
August saw a decrease in Eurozone business activity.
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