The monthly Purchasing Managers' Index is intended to reflect the mood among industry and service providers. The value reflects expectations of Germany's economic development. According to the latest evaluation, economic growth in the euro zone is gradually running out of steam.
Economic growth in Germany and the euro zone is cooling off surprisingly sharply. The purchasing managers' index for the private sector - manufacturing and service providers combined - fell 2.4 points to 51.3 points in June, a six-month low, according to S
While the barometer for service providers alone unexpectedly dropped significantly from 55.0 to 52.4 points, the index for industry fell by 2.8 to 52.0 points and thus to its lowest level in almost two years. "The declining foreign orders proved to be a brake," explained S
The unfavorable framework conditions from high prices, especially for raw materials and preliminary products, delivery bottlenecks, staff shortages and rising interest rates clouded the prospects more clearly than before. The interest rate hike expected by the European Central Bank (ECB) for July is therefore out of the question, since monetary policy must counteract the record inflation of 8.1 percent in the euro area. "But longer-term interest rate expectations will probably be dampened."
The purchasing managers' index for the entire economy in the euro zone fell unexpectedly sharply by 2.9 to 51.9 points, its lowest level in 16 months. "Economic growth in the euro zone is starting to run out of steam," said chief economist Chris Williamson of S
The companies were looking to the future with less optimism than they were last in October 2020. The high inflation, ongoing supply chain problems and now the increasingly real risk of a gas supply stop from Russia are increasingly burdening the economy, said LBBW expert Elmar Völker. "We are looking more and more into an economic abyss - we haven't fallen yet, but there are not too many steps left to the cliff." In France, too, the economy slowed noticeably and grew more slowly than at any time since the corona headwind caused by the Omicron wave in January.
