Bloody Europe! Weakest PMI data since Covid

<p>&nbsp;The continued weakness of European economic activity in July continued to be reflected in newly published manufacturing and services PMI data.</p><p><br /></p><p>France's manufacturing sector suffered its worst fall since May 2020 as it continued to struggle with higher borrowing costs set by the European Central Bank (ECB).</p><p><br /></p><p>Meanwhile, service activity was the weakest since February 2021 in July due to weak demand and higher prices.</p><p><br /></p><p>This thus signals a significant economic slowdown in France, with the most significant reduction in business activity since November 2020.</p><p><br /></p><p>In Germany, meanwhile, the manufacturing sector experienced the sharpest contraction since May 2020, amid a drop in demand for goods.</p><p><br /></p><p><br /></p><p>In addition, services activity continued to lose momentum with the slowest growth in five months due to a drop in new inflows.</p><p><br /></p><p>Overall in the European Zone, manufacturing activity recorded contraction to the weakest level in 3 years and services expanded slowly since January.</p><p><br /></p><p>Meanwhile in the UK, the manufacturing sector fell to a six-month low in July following lower demand and overstocking among customers.</p><p><br /></p><p>Services activity recorded the slowest increase in six months on the back of flat new orders and a weaker real estate market.</p><p><br /></p><p>A string of published data, the euro and the pound depreciated against the greenback.</p>