The Eurozone Purchasing Managers' Index (PMI) Composite Output Index, which takes both the services and the manufacturing business activity into account, is expected to come in at 50.1 in July, reaching its 5-month low, S&P Global and Hamburg Commercial Bank (HCOB) revealed in their preliminary report on Wednesday.
The figure stood below analysts' projections, pointing to a near-stagnation of private sector activity. The Services PMI Business Activity Index came in at 51.9, hitting its 4-month low. Meanwhile, the Manufacturing PMI and Manufacturing Output Index, are both estimated to slow, falling to their 7-month lows of 45.6 and 45.3 respectively.
"Is this the summer lull? It feels a bit like it as the Eurozone economy barely moved in July," HCOB Chief Economist Dr. Cyrus de la Rubia said. "It's unsettling how steadily companies in the manufacturing sector are slashing jobs month by month. The pace has barely changed over the last ten months," he added.
