Euro-Area Downturn Quickens as Services Start Shrinking
- Composite PMI drops to 47; median economist estimate was 48.5
- Markets pare bets on ECB hikes, now see pause in September
The contraction of private-sector activity in the euro area intensified as services ceased being a bright spot and followed the industrial sector into a downturn.
Worse-than-expected numbers from the region’s two top economies prompted market bets to shift toward a pause in European Central Bank interest-rate increases next month and brought warnings that output in the 20-nation bloc will shrink this quarter.
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Euro-Area Downturn Quickens as Services Start Shrinking