Euro Zone's Economic Stagnation: Services Struggle and Manufacturing Stalls
The euro zone economy remained stagnant in June, as minimal growth in the services sector and no improvement in manufacturing led to a flatlining scenario. Germany showed signs of growth, but France experienced further contraction, and overall demand decreased modestly despite increased optimism among service firms.
For the second consecutive month, the euro zone economy showed little to no growth in June, according to a survey released on Monday. Despite slight improvements in the services sector, manufacturing continued to struggle, reflecting an economic standstill.
Description of the euro zone's Purchasing Managers' Index (PMI) revealed a composite score of 50.2, scarcely above the growth threshold. Germany returned to growth, while France faced greater economic contraction. Overall demand across the bloc fell, marking the 13th month of decline, though with marginal intensity.
Meanwhile, the European Central Bank's efforts to address inflation seem nearly complete, with rates targeted below 2%, amidst a pause in policy easing. Optimism rose among service providers, with their business expectations index reaching a four-month high.
(With inputs from agencies.)
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