The slowing recovery in the euro area is starting to deepen with the advanced estimate for June PMI Composite slowing rapidly to 53.6 from 55.8 and worse than the expected 55.2. The sectors growth is slowing pressured by rising inflation and slowing global growth which is dampening the recovery in both the manufacturing and services sector.

The Services PMI slowed to 54.2 from 56.0 and lower than the expected 55.3; meanwhile, the Manufacturing PMI slowed to 52.0 from 54.6 and also worse than the expected 53.8.