LONDON—Business activity across the eurozone contracted for a second straight month in August as the cost of living crisis forced consumers to curtail spending while supply constraints continued to hurt manufacturers, a survey showed on Tuesday.
The global economy is increasingly at risk from sliding into recession as Ukraine’s war and China’s strict COVID-19 lockdowns have further damaged supply lines not yet recovered from the pandemic.
Meanwhile, consumers are facing the highest inflation in a generation which is forcing central banks to tighten monetary policy aggressively just as the economies need support.
S&P Global’s flash eurozone Composite Purchasing Managers’ Index (PMI), seen as a good guide to overall economic health, fell to 49.2 in August from 49.9 in July, just above the median forecast in a Reuters poll for a bigger drop to 49.0….