2017.07.2422:46:00UTC+00Eurozone Business Growth Slows at Start of the Second Half of 2017

Eurozone business growth slowed at the beginning of the second half of 2017, while a key business survey showed that inflation pressures were declining.

Several years of ultra-easy policy has supported still-solid growth in the bloc, however, inflation is far from the European Central Bank's two percent target ceiling and shallow price increases this month are seen to provide weak reading for policymakers.

Germany and France fell short of expectations, which implies a stronger pace of business activity in many of the bloc's other members.

IHS Markit's Eurozone Flash Composite Purchasing Managers' Index for July dropped to 55.8 from June's 56.3.

IHS Markit said the euro zone PMI, if maintained, indicated a third quarter GDP growth of 0.6 percent. Growth in the previous quarter was forecast at 0.5 percent.

Germany's private sector expanded at a slower pace amid weaker activity as a result of factory closures for summer holidays.

French business activity slowed more than expected to a six-month low, however, manufacturing accelerated.