Euroblues

The Russo-Ukraine War is putting a damper on the eurozone:

In its monthly survey, financial information company Markit highlighted tensions in Ukraine for a sharp fall in its gauge of business activity for the 18-country eurozone.

Its purchasing managers’ index, which collates figures from the manufacturing and services sectors, fell to 52.5 points in August from July’s 3-month high of 53.8. Though it remains above the 50 threshold that signals growth, the indicator is at its lowest level this year and below the preliminary estimate of 52.8.

“Tensions in Ukraine are clearly having an impact on confidence, subduing business spending and investment,” said Chris Williamson, Markit’s chief economist.

Separately Wednesday, the European Union’s statistics office, Eurostat, said eurozone retail sales fell by a monthly 0.4 percent in July.

2014 has already seen zero growth throughout much of Europe, so this comes at the worst possible time.