The final manufacturing Purchasing Managers’ Index in the eurozone fell to 49.8 in July from 52.1 in June, according to S&P Global.
The reading was still slightly higher than the preliminary manufacturing PMI of 49.6.
The final manufacturing PMI in the eurozone fell for the first time since June 2020. With a PMI below 50, the eurozone manufacturing sector is in a contraction phase.
The manufacturing sector in the eurozone declined in July, as many factories have to keep unsold items in stock due to weak demand. This raises concerns that the eurozone economy could slide into recession.