London’s economic recovery shows ‘levelling up’ struggles; stagflation fears rise – as it happened

Rolling coverage of the latest economic and financial news

• Latest: World Bank cuts global growth forecasts
• Stocks drop as Target warns on profit margins
• London was fastest-growing region in Q1
• UK service sector slows as inflation bites
• Manufacturing orders in Germany fall for third month running
• Pound weakens amid political uncertainty and economic problems

Eurozone construction activity has fallen for the first time in nine months, another sign that Europe's economy is weakening.

S&P Global's eurozone construction PMI, which tracks activity in the sector, has fallen into contraction territory, as supply chain problems due to the Ukraine war led to raw material shortages and higher prices.

Construction firms in the bloc were increasingly pessimistic regarding the outlook for activity over the coming year, with confidence at its lowest level since October 2020.

At the national level, German firms reported the strongest decline in output for nine months, while Italian constructors signalled a further expansion in May that was nonetheless the softest in the current 16-month growth sequence. Businesses in France saw a mild increase that was the fastest since January."