Assessing the state of the global economy | Deloitte |

In Europe, the Eurozone is experiencing a decline in manufacturing activity. The PMI for the region fell from 52.1 in June to 49.8 in July, a 25-month low. Output fell at the fastest pace since the start of the pandemic as did new orders. On the positive side, price pressures diminished as inventory accumulation soared and supply chain pressure eased. Business sentiment was very poor owing to concerns about the war in Ukraine and the overall state of the economy.

The four largest economies in the Eurozone (Germany, France, Italy, Spain) all fell into negative growth territory (Italy being the lowest) while there was positive and strong growth in the Netherlands. Meanwhile, it was reported separately that retail sales in Germany declined at the fastest rate on record. Markit pointed to the energy sector as posing the greatest risk to the region.