What's going on?

Fresh data out on Monday showed economic activity in the US and the eurozone lost traction in August, and some investors reckon the slide�s only just begun�

What does this mean?

Monthly business activity surveys ask company managers how busy they�ve been compared to the month before, providing a near real-time snapshot of economic performance. And while the eurozone followed up a record-breaking July with another uptick in activity in August, that activity � across both manufacturing and services industries � fell short of economists� forecasts. The story was the same in the US: economic activity�s on the up, but not by quite as much as expected. And this, if some analysts are to be believed, could just be a sign of things to come.

Why should I care?

The bigger picture: A potential Greek tragedy.

Investors are paying more and more attention to the Delta variant, which is driving a rise in cases even among fully vaccinated people. That brings with it two major risks to economic growth: even more lockdowns � which might lead to less spending and hamstrung businesses � and even more disruptions to supply chains. If, after all, there are more people in isolation, parts won�t get to where they need to be, and there�ll be fewer products available to drive the recovery.

For markets: Traders are on the money.

Traders right now are effectively betting that the European Central Bank won�t increase eurozone interest rates for another three years � and even then, it�ll be by just 0.1%. What�s notable, though, is that they were expecting a 0.3% hike back in May, suggesting they�ve been quick to adjust as new European data takes on a slightly less optimistic color.