EU executive has downgraded its growth forecast for 2026
Brussels has rung the alarm bell with a spring forecast “that projects weaker economic activity, as the conflict in the Middle East triggers a new energy shock that reignites inflation and shakes economic sentiment”.
The warning comes as the eurozone’s purchasing managers index (PMI), published by S&P Global, showed a contraction in activity with a reading of 47.5 – a 31-month low – down from 48.8 in April.
A PMI reading above 50 indicates growth while figures below 50 signals a economic contraction or recession. Other indicators point to a economic slowdown and increased fiscal costs for governments.
Log in to continue reading for free
