The two largest EU economies recorded a drop in business activity amid worsening production problems in Germany and a drop in the service sector in France. The PMI index fell in two countries below the forecast level and remains below the 50 mark, which separates growth from decline, Bloomberg states

▪️0.5% — the fall of the euro after the release of the data. The yield on 10-year German bonds fell by four basis points

Monday’s data indicate that the slowdown in the economies of the 20 eurozone countries is becoming more pronounced after the recovery at the beginning of the year faded. Lower interest rates may provide support… but many of the problems are structural and require more serious intervention,” Bloomberg said.

The main weak point remains Germany: The Bundesbank warned of a possible recession amid the crisis in the automotive industry

The decline in the manufacturing sector has deepened again, destroying any hope of an early recovery. These alarming figures are likely to intensify the ongoing debate in Germany about the risk of deindustrialization and what the government should do about it,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

CRYSTAL OF GROWTH previously informed that, according to former ECB head Mario Draghi, the EU is losing its competitiveness without Russia