The European zone maintained growth in economic activity despite facing uncertainty from cost surges and supply chain disruptions still affected by the Covid-19 outbreak and the Ukraine-Russia war.
Europe’s largest economy, Germany recorded a slight expansion in the manufacturing sector this month at 54.7 from 54.6 recorded the previous month, and exceeded the 54.0 projection by the market.
However, the services sector, on the other hand, rose to 56.3, down from 57.6 recorded last month and missing market expectations to grow to 57.2 in May.
In France, the manufacturing sector registered a slower growth of 54.5 from 55.7 previously, while services activity was in line with expectations to increase by 58.4.
Overall, both economic activities in the European Zone were seen to remain resilient despite signs that demand began to come under pressure due to market uncertainty, rising prices and supply issues after manufacturers reported the most significant decline in new orders in nearly 2 years.
In addition in Britain, manufacturing activity declined to 54.6 from 55.8 recorded the previous month and was slightly gloomy from market projections to rise to 54.9. Meanwhile, the services sector fell to a 15 -month low, from 58.9 to 51.8, and missed expectations for growth of 56.9.
Both of these declines were influenced by inflationary pressures and rising geopolitical uncertainties that stifled demand. The surge in inflation in services has sparked concerns over weaker orders, resulting in a sharp drop in business expectations for next year.
The fall in these two sectors also signaled a significant slowdown awaiting the UK economy, according to S&P Global.
