Growth in eurozone business activity suffered a sharp slowdown in June, according to a closely watched survey of companies, intensifying concerns that the fallout from Russia’s invasion of Ukraine could drag the bloc into recession.
S&P Global said its flash eurozone composite purchasing managers’ index, which takes the pulse of business activity, fell to a 16-month low as manufacturers’ output and new orders both fell and companies complained of high inflation, weak demand and political uncertainty.
The news pushed European share indices lower on Thursday and prompted traders to scale back their bets on how much the European Central Bank will raise interest rates this year, sending government bond prices up. The euro fell 0.7 per cent against the dollar to $1.0497.