EUR weakened against most of its rivals in the European session on Thursday after data showed that the Eurozone’s business activity growth slowed more than feared in June.
S&P Global reported that its preliminary estimates showed that Eurozone PMI Composite Output Index plunged from 54.8 in May to 51.9 early this month. This represented the lowest reading since a contraction in February 2021. Economists had forecast the indicator to decrease to 54.0 in June. A sharp deterioration was due to slower growth in activities across both manufacturing and services industries. The S&P Global Eurozone Manufacturing PMI fell from 54.6 in May to 52 in June, the lowest level in 22 months. Economists had predicted it to decline to 53.9. The S&P Global Eurozone Services PMI decreased from 56.1 in May to 52.8 early this month, its lowest level in five months. Economists had expected the index to decline to 55.5.
The worse-than-feared June PMIs heightened worries about worsening economic growth in the Eurozone and fueled discussions about how much the European Central Bank can actually hike its interest rates.