Eurozone economy shrinks as inflation spooks consumers

Agence France-Presse

Posted at Jul 22 2022 05:10 PM

A workers seen at a construction site of an apartment building with the European Central Bank, ECB, on the background left, Frankfurt am Main, Germany, May 4, 2018. Mauritz Antin, EPA-EFE/File 
A workers seen at a construction site of an apartment building with the European Central Bank, ECB, on the background left, Frankfurt am Main, Germany, May 4, 2018. Mauritz Antin, EPA-EFE/File 


BRUSSELS — Economic activity in the eurozone plummeted in July, a key survey showed Friday, with a big fall in manufacturing and as high prices begin to slow consumers' post-lockdown spending sprees.

The closely watched monthly purchase managers' index, or PMI, by S&P Global fell from 52.0 in June to 49.4, below the 50-point level that indicates growth.

"Excluding pandemic lockdown months, July's contraction is the first signaled by the PMI since June 2013," said Chris Williamson, chief business economist at S&P Global.

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