The Eurozone private sector activity lost momentum for the second consecutive month in July, but still started the third quarter on a stable basis. The PMI for the Eurozone industry declines from 57.4 points in June to 56.8 points in July, according to data from private company Markit. The expectations were the drop to 57.2 points. The services sector sub-index remained unchanged at 55.4 points, with expectations for a slight increase to 55.5 points.
The single measure, which includes industry and services, declined to a six-month low at 55.8 points versus 56.3 points in June. The estimates were for a value of 56.2 points.
Any value above 50 points speaks for expansion, and any value below 50 points – for contraction in the sector.
Growth in the euro-region economy started the third quarter at the weakest pace in six months as manufacturing cooled.
“The fall in PMI indices in July signaled that Eurozone growth was losing momentum for the second consecutive month, but it still remains impressive”, said the chief economist at Markit, Chris Williamson. “The slowing economic growth seen in surveys and weakening inflationary pressures backs the assertion that the ECB will not hurry with the tightening of monetary policy and leave all the loopholes open until it sees a more robust sustainability in growth”, added he.