Eurozone business activity rose at the slowest pace over the past six months, IHS Markit said.
Markit’s flash composite Purchasing Managers' Index for July fell to 55.8 from June's 56.3. However, it still remains above the 50 level that separates growth from contraction.
The services PMI came in at unchanged from June’s level at 55.4, while the manufacturing PMI fell to 57.4 from 56.8, the lowest level in three months. July’s decline indicates that the euro area countries are losing momentum for the second straight month, Chris Williamson, Chief Business Economist at IHS Markit noted. The economist highlighted a slight drop in business activity growth, while the results of the survey were consistent with GDP growth of 0.6% on a quarterly basis.
“The survey data therefore suggest there’s little to worry policymakers from an inflation perspective”, Williamson said.
Earlier, the European Central Bank left its base interest rate for loans at zero level and the deposit rate at -0.4%. The marginal lending rate stayed at 0.25% and the QE program parameters were kept unchanged. The ECB said it will continue buying €60 billion per month of government and corporate bonds until December this year, but is widely expected to extend the program.
