Last June, the activity of the private sector in the euro zone suffered a small drop. The PMI composite index – a thermometer that measures activity, orders, occupation, stocks or deliveries – fell to 49.9 points from 52.8 in May, its lowest level in the last six months, according to data from S&P Global and Hamburg. Commercial Bank. When it falls below the level of 50 points, it enters into contraction.
Among the countries analysed, Spain and Germany were the only two large economies to expand their activity in June, while Italy and France contracted.
The contraction is due to the slowdown in growth in the services sector, whose PMI reached its lowest level in five months, falling to 52 points from 55.1 in May.
The manufacturing PMI had its lowest data in 37 months in June, falling to 43.4 points from 44.8 in May. According to those responsible for the survey, the weakening of demand influenced the result with a particularly pronounced drop in new orders in the manufacturing sector.
However, employment continued to increase thanks to the momentum of the service sector, due to the fact that for the first time since January 2021 the number of personnel in factories decreased.
Inflationary pressures continued to ease in June on the back of a steeper decline in manufacturing costs, accompanied by the slowest increase in utility costs in 25 months. Despite this, sales prices continued to rise, but at the weakest pace since March 2021.