The eurozone economy did not show significant growth last month, as a slight increase in the service sector was offset by a continued decline in manufacturing. The final composite Purchasing Managers' Index (PMI) compiled by S&P Global, which serves as a reliable indicator of the economic situation, remained at 50.2, slightly above the threshold of 50 separating growth and contraction. The PMI for the services sector dropped to a three-month low of 50.6 from the previous 51.3. There are additional signs of a slowdown in the manufacturing sector, as evidenced by the PMI data released on Monday. Analysts also point out that it may take time for the monetary union to achieve noticeable growth, as overall demand continues to decline at an accelerated pace. The new orders sub-index fell to 49.0 from 49.3. Inflationary pressures in the services sector, which are closely monitored by the European Central Bank, remain high. Prices for services are increasing at the fastest pace in the last ten months, with the index rising to 54.7 from 53.9.
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