Eurozone’s Services Sector Under Pressure
The services sector of the Eurozone is facing a series of challenges, as depicted by the HCOB Eurozone Services PMI Business Activity Index, which slid from 50.9 in July to 47.9 in August, marking its first contraction since December 2022. The largest economies of the Eurozone, namely France, Germany, Italy, and Spain, all observed setbacks, with France and Germany registering the most substantial downturns.
New Business & Demand
The Eurozone’s services sector observed a reduction in the volume of new business for the second consecutive month, at the steepest rate since February 2021. The demand for services has seen a decline eight times since the second half of 2022. Specifically, France and Germany were primarily responsible for this contraction.
