In the coming months, the pace of economic growth in the Eurozone could slow down. That is, according to the IHS Markit report on the Eurozone for July, published today at 11:00 (GMT 3). The preliminary PMI composite from IHS Markit shows a decline to 54.3, down from 54.9 in June, marking one of the lowest values seen on this index in 2 years.
July’s report also suggests that economic activity in the Eurozone will decline further in August due to the fact that fewer orders have been received by European manufacturers. Because of this, expectations from European business representatives are at a near two-year low.
On the back of this latest research, IHS Markit reckons that the Eurozone’s economy will grow by 0.4% if Q3 (QoQ), down from 0.5% (QoQ) in Q2.
Having looked at today’s IHS Markit report for July, it seems to me that Eurozone economic growth is starting to stagnate. The high growth rates of 0.7 – 0.8% QoQ seen at the beginning of 2017 are unlikely to be repeated in the next few months. As such, for the near future, I don’t see any strong growth prospects for the single currency, the likes of which were seen at the end of last year.