S&P Global’s survey shows that economic activity in the eurozone fell for the second month in a row in August due to weak demand. People are concerned about the escalating cost-of-living crisis and sluggish economic development, which is limiting consumers’ propensity to spend.
The Purchasing Managers’ Index (PMI) for manufacturing and services fell to an 18-month low of 48.9 in August from 49.9 in July.
“The second consecutive month of business deterioration in the eurozone increases the likelihood of a contraction in GDP in the third quarter,” S&P Global’s chief business economist said.
The final eurozone services PMI fell to 49.8 in August from 51.2 in July, below the initial estimate of 50.2, the first decline below 50 since March 2021.