Cost of living - latest: Leading broker not hopeful on falling mortgage rates; Ocado drops price of 200 items
The PMIs showed that business activity in Europe's largest economy, which is already in recession, contracted at the fastest pace for more than three years in August. Its powerhouse manufacturing sector was found to have suffered a deeper downturn than expected while consumers also tightened their belts as services activity also contracted.Evidence of a growing slowdown prompted financial markets to trim their bets for a fresh hike to interest rates by the European Central Bank next month.
That is despite inflation across the 20 nations that use the single European currency standing at 5.3%, according to the latest reading.Refinitiv data suggested that only 40% of market participants were now anticipating a 0.25 percentage point rate hike at the next ECB meeting.It is a nod to fears that further rate hikes risk deepening Germany's economic woes at a time when its manufacturers are already grappling the effects of steep falls in demand both at home and abroad.