LONDON (AP) — A business survey that is closely monitored by the European Central Bank is showing that the eurozone economy is slowing sharply and not far off levels that will see it contracting.

In its monthly survey of the manufacturing and services sector, IHS Markit said Monday that its composite purchasing managers’ index fell to 51.5 in July from 52.2 the previous month. The fall takes the index close to the 50 threshold which marks no change in output.

The overall index masked differences between the sectors with services continuing to grow solidly but manufacturing posting an accelerated fall in output.

The firm’s chief business economist Chris Williamson said reasons behind the manufacturing sector’s woes including trade war worries, slower economic growth as well as Brexit.