Eurozone manufacturing activity at 36-month lows

Both manufacturing and service sector activity fell in the euro area.

The composite Purchasing Managers’ Index, a measure of activity in the manufacturing and services sectors, fell from 54.1 to 53.3 month-on-month, posting its first drop since October last year.

Although the index continues to point to reasonable economic growth, the decline in the index after a long time is indicative of a weakening manufacturing sector.

Manufacturing activity fell to 44.6 from 45.8 in May, falling to a 36-month low, according to data from S&P Global.

The service sector PMI, on the other hand, still points to strong output growth, though it fell from 56.2 to 55.9.

In the services sector, the result remained above the 50 mark that separates contraction from expansion, while in the manufacturing sector contraction increased.

As services inflation picked up again, the gap between services and manufacturing widened.