The continued weakness of European economic activity in July continued to be reflected in newly published manufacturing and services PMI data.
France's manufacturing sector suffered its worst fall since May 2020 as it continued to struggle with higher borrowing costs set by the European Central Bank (ECB).
Meanwhile, service activity was the weakest since February 2021 in July due to weak demand and higher prices.
This thus signals a significant economic slowdown in France, with the most significant reduction in business activity since November 2020.
In Germany, meanwhile, the manufacturing sector experienced the sharpest contraction since May 2020, amid a drop in demand for goods.
In addition, services activity continued to lose momentum with the slowest growth in five months due to a drop in new inflows.
Overall in the European Zone, manufacturing activity recorded contraction to the weakest level in 3 years and services expanded slowly since January.
Meanwhile in the UK, the manufacturing sector fell to a six-month low in July following lower demand and overstocking among customers.
Services activity recorded the slowest increase in six months on the back of flat new orders and a weaker real estate market.
A string of published data, the euro and the pound depreciated against the greenback.
