Tag: Eurozone

LONDON, Aug 1 (Reuters) – Manufacturing activity across the euro zone contracted in July at the fastest pace since COVID-19 was cementing its grip on the world as demand slumped despite factories cutting their prices sharply, a survey showed on Tuesday.

Retail sales in the eurozone flatlined in May for the second month in a row, a weaker result than expected, with high inflation and fears of an economic slowdown amid high interest rates still to weigh on household spending.

Euro zone business activity slipped into contractionary territory last month in a broad-based downturn across the bloc’s dominant services industry and a deepening decline of factory output, a survey showed.

Euro zone inflation hit 5.5% in June, according to preliminary data, coming in lower than analyst expectations — but core inflation, which excludes energy and food, remains stubbornly high and rose to 5.4%.

Industrial output in the eurozone was better than expected in April, improving from a steep decline in March, providing a respite from a gloomy outlook of the bloc’s manufacturing economy.

The pan-European Stoxx 600 index was flat around midday, with sectors spread across positive and negative territory. Tech stocks led losses with a 0.9% downturn, while minor gains were led by a 1.7% uptick in auto stocks.

The 20 countries that use the euro fell into a mild recession around the turn of the year, as high inflation discouraged consumer spending and governments tightened the purse strings.

European markets were higher Friday as U.S. debt ceiling talks boosted investor sentiment.

European Union states gave the final nod to the world’s first comprehensive set of rules to regulate crypto assets on Tuesday.

The eurozone economy grew marginally in the first quarter, matching preliminary estimates, shrugging off earlier concerns of a recession as it dodged a crippling energy crisis.

European markets were slightly lower Tuesday as traders reacted to fresh data, corporate news and followed the U.S. debt ceiling negotiations.