European business activity slows in June as higher interest rates begin to bite

Business activity growth in Europe slowed in June, pointing to a difficult end to the second quarter, according to preliminary data Friday.

The euro zone’s flash composite Purchasing Managers’ Index dropped to 50.3 in June from 52.8 in the previous month. This was below the 52.5 expected by analysts. A reading above 50 marks an expansion in activity, while one below 50 marks a contraction.

“Eurozone business output growth came close to stalling…