The eurozone manufacturing sector fell deeper into contraction at the start of the third quarter, with July PMI® data signalling the sharpest decline in production since the initial wave of strict COVID-19 lockdowns in May 2020. The downturn strengthened amid a reduction in new orders which, aside from those seen during the pandemic restrictions, was the sharpest since the eurozone sovereign debt crisis in 2012 as steep inflation squeezed demand. That said, there was some alleviation of price pressures during July as both input cost and output price inflation rates slowed to 17- and 15-month lows respectively. ... (full story)