Business Activity Slowing Down? Investors are increasingly worried about the state of the global economy!

<p>&nbsp;Global business activity slowed sharply last month as service companies grappled with weak demand, due to rising prices and borrowing costs that made indebted consumers rein in spending. This is the result of several studies released on Tuesday.</p><p><br /></p><p>In the European zone, the situation is more bleak than initially expected as the dominant service industry in this zone has declined to a contraction area indicating that this zone may slide into recession.</p><p><br /></p><p>Germany's service sector shrank for the first time this year and in France, it shrank more than expected. In Britain, outside the European Union, the study showed the biggest drop in business in seven months.</p><p><br /></p><p>Surveys for August in Asia also showed a more pessimistic mood, with services activity in China expanding at the lowest rate in eight months, while growth in India also slowed.</p><p><br /></p><p>Global equities fell on Tuesday as the weak reading fueled concerns about China's economy slumping after the pandemic.</p><p><br /></p><p>"The recovery of weak economic data from Asia is the main driver of market sentiment," said economists at RBC.</p><p><br /></p><p>The final HCOB European Zone Composite Producer Index (PMI), compiled by S&amp;P Global and considered a good indicator of overall economic health, fell to 46.7 in August from 48.6 in July, which was the lowest level not seen since November 2020.</p><p><br /></p><p><br /></p><p>This was below the 50 level that separates growth from contraction for the third straight month and weaker than the initial estimate of 47.0.</p><p><br /></p><p>Figures on Tuesday showed a contraction of 0.1% in euro zone gross domestic product for the quarter, S&amp;P Global said.</p><p><br /></p><p>Services PMI readings for Britain, Germany, France, Italy, and Spain were all below balance.</p><p><br /></p><p>China's Caixin/S&amp;P Global services PMI slipped to 51.8 in August from 54.1 in July, the lowest reading since December as COVID-19 curbed the consumer sector.</p><p><br /></p><p>The data was broadly in line with the official services PMI released last week, which showed the sector continued to decline.</p><p><br /></p><p>Chinese stocks fell after the study, while optimism fueled by Beijing's latest stimulus measures also waned.</p><p><br /></p><p>Overall economic conditions in India remained strong although its PMI fell to 60.1 from 62.3. Japan's PMI bucked the trend and rose to 54.3 last month from 53.8.</p>