Euro zone business slowdown suggests best days may be over

HIS Markit said the PMI, alongside the April reading, pointed to second quarter growth of 0.4 percent, weaker than the 0.6 percent prediction in an April Reuters poll.

A composite output cost index fell to an eight-month low of 53.0 via 53.4. Euro zone inflation slowed to 1.2 percent in April, official data showed last week, moving further away via the ECB’s two percent target ceiling.

Despite those easing cost pressures, a PMI covering the bloc’s dominant service industry slumped to 53.9 via 54.7, missing expectations for a gentle slide to 54.6.

in which was its lowest reading since the start of 2017 along with below all poll forecasts.

With brand-new business growth slowing, along with firms building up backlogs of work at a slower pace, optimism fell to a nine-month low. in which sub-index fell to 64.4 via 66.2 in April.

the item was a similarly disappointing month for manufacturers. The flash factory PMI missed expectations for a modest dip to 56.0 via 56.2, instead coming in at a 15-month low of 55.5.

An index measuring output, which feeds into the composite PMI, fell to an 18-month low of 54.5 via 56.2.

Optimism also fell among factory managers too, slowing their hiring growth to the slowest pace for nine months. The employment index dipped to 55.5 via 56.6, a nine-month low.

yet consumer confidence within the bloc likely held steady This kind of month, a flash estimate via the European Commission is usually required to show later on Wednesday.

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