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S&P Global: Eurozone, German and French PMIs fall more than expected

The S&P Global Purchasing Managers’ Index (PMI) for the eurozone manufacturing and services sectors fell to 51.9 in June 2022 from 54.8 in May.

Chris Williamson, the chief business economist at S&P Global Markets Intelligence, wrote, “The seasonally adjusted S&P Global Eurozone PMI® Composite Output Index fell from 54.8 in May to 51.9 in June, according to the early ‘flash’ reading. While the latest reading indicates an expansion of business activity for the sixteenth straight month, the rate of growth has moderated for two consecutive months to its lowest in the current sequence of expansion. Excluding pandemic lockdown months, June’s slowdown was the most abrupt recorded by the survey since the height of the global financial crisis in November 2008.”

The German PMI for the service sector was 52.4 in June, down from 55.5 in May.

The manufacturing PMI index fell to 52.0 in June from 54.8 in May.

However, the index above 50 indicates that German economic activity is continuing to increase. However, pressure from the shrinking export sector and economic volatility, including inflation, which is affecting domestic demand, was present.

In addition, growth in the French economy in June was lower than expected as inflation rises and supply disruptions affect the French economy.

According to the report, the French PMI for the services sector was 54.4 points in June, down from 58.3 points in May, while analysts had expected 57.6 points.

The primary manufacturing PMI in France was 51.0 in June, down from 54.6 in May.

The French PMI for manufacturing and primary services was 52.8 in June, down from 57.0 in May.

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