Eurozone business activity has suffered its biggest contraction for 18 months as a result of higher prices, falling demand and rising inventories of unsold goods, according to a benchmark survey of companies, which has added to fears of an impending recession.
S&P Global’s flash composite purchasing managers’ index on Tuesday fell 0.7 points to 49.2, its lowest level since February 2021 and the second consecutive month below the crucial 50 mark that separates growth from contraction
Economists polled by Reuters had expected a slightly bigger fall. But the survey underlined the challenges confronting the eurozone economy after German businesses reported their biggest reversal of activity for more than two years, while French businesses suffered their first contraction in 18 months.