Europe's Economic Data Plunges to New Lows

European business activity contracted in August, reaching its lowest level since November 2020, according to the euro zone's flash composite Purchasing Managers' Index. The service sector and manufacturing both showed signs of decline, with Germany reporting the deepest contraction. The data suggests that the euro zone's economy may shrink by 0.2% in the third quarter. The European Central Bank's upcoming decision on interest rates will depend on new data, with some economists expecting a pause in rate hikes while others anticipate a continuation.