Eurozone business growth slows

Eurozone business growth was at its lowest level in three months in July, a closely watched survey said on Wednesday, with an increasingly worrying slowdown in manufacturing in Germany and elsewhere.

While the service sector continues to deliver solid growth, albeit slowing slightly compared to June, the manufacturing sector reported the steepest slide in production since April 2013.

“The manufacturing sector has become an increasing cause for concern,” said Chris Williamson, an IHS Markit economist.

“Geopolitical worries, Brexit, growing trade frictions and the deteriorating performance of the auto sector in particular have pushed manufacturing into a deeper downturn.”

IHS Markit said its composite eurozone PMI fell to 51.5 points in July from 52.2 points in June.

A reading above 50 points indicates an expansion, and the long-term trend appears to be heading towards stagnation.

However, manufacturing fell to 46.4 -- a 79-month low -- from a reading of 47.6 in June.