Germany’s composite Purchasing Managers’ Index fell to 48 in June, marking a third consecutive month of contraction in private-sector activity. A reading below 50 indicates that activity is shrinking rather than expanding.
The decline points to deteriorating conditions in Europe’s largest economy, as both manufacturing and services come under pressure. Persistent weakness over several months suggests the slowdown is more than a temporary dip.
The PMI is a closely watched indicator of business conditions, drawn from surveys of companies on output, orders and employment. A sustained run of sub-50 readings signals broad-based softness across the German economy.
Continued contraction in Germany carries implications for the wider euro area, given the country’s economic weight. The report attributes the weakness to deteriorating conditions and global uncertainty weighing on activity.
Created by Ayen Stabel.
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Sources:
https://www.troweprice.com/personal-investing/resources/insights/global-markets-weekly-update.html