Euro Area composite PMI declines further

The composite PMI declined further in July , falling below the 50 threshold for the first time since June 2020. The decline in sentiment is broad-based, visible across sectors and sub-indices, thus pointing to a general slowdown of the economy during the summer. The one positive piece of information is the further decline in “delivery times of supplie r s” which point s to a further easing in supply chain problems and the corresponding underlying inflationary pressure.