The advanced July PMI estimates for the euro area assured the slowing pace of recovery with the beginning of the third quarter, setting the alarm with the index nearing the 50 expansion barrier.

The aggregate activity gauge, the Composite PMI slowed to 50.8 from 53.3 and much below expectations for 52.6 pressured by the slowing activity across the manufacturing and services sectors.

The Manufacturing PMI slowed drastically and close to entering contraction with the index slumping to 50.4 from 52.0 and below the expected 51.5. The Services PMI also slowed to 51.4 from 53.7 and below expectations for 53.2.