Eurozone Economy Slows Sharply on Squeeze From Record Prices
- Composite PMI falls to 16-month low as living costs surge
- Pent-up demand for services after pandemic already fading
Visitors pass stores and bars at Marienplatz square in Munich, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Euro-area economic expansion slowed sharply as surging prices curbed the rebound from pandemic restrictions and factories continued to suffer from supply snarls.
An indicator for economic activity by S&P Global fell to a 16-month low in June, driven by rampant inflation, concerns over energy and rising borrowing costs. While the overall gauge still signals modest expansion, manufacturing output declined for the first time in two years.