Chart 3 The global tech cycle (left-hand scale: diffusion index; right-hand scale: annual percentage changes)  https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp190916~ca7... 16.09.2019  Reflections on monetary policy  Page 3 of 18  Sources: Tirpák, M. (2019), Markit, Thomson Financial Datastream, FRED, KITA and ECB calculations. Latest update: August 2019 (PMI, Philadelphia Semiconductor Index and US Tech Pulse Index) and July 2019 (Korean semiconductor exports).
Turning to the euro area, real GDP growth slowed from 0.4 percent, quarter on quarter, in the first quarter of this year, to 0.2 percent in the second quarter. This slowdown was due to a contraction of net exports, reflecting the weakness in the external environment, while domestic demand remained resilient.