Eurozone: Composite PMI inches up in August
August 24, 2017
Leading data suggests that the Euro area’s momentum firmed slightly in August, supported by a healthy manufacturing sector. The preliminary Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 55.8 in August, up from July’s revised 55.7 (previously reported: 55.8). The result overshot market analysts’ expectations of a fall to 55.5. The composite PMI lies far above the 50-threshold, signaling expanding business activity in the Eurozone.
Looking at the details, the manufacturing sector drove August’s rise, while services activity grew at a slower pace than in July. Exports rose at the fastest pace in over six years and jobs were added at a solid pace. Business confidence, however, moderated and recorded the worst result since November 2016. Meanwhile, price pressures rose for the first time since February in August, although inflation remained moderate overall.
Regarding the two largest Eurozone economies, faster growth was recorded in Germany, while activity in France was unchanged from the previous month in August. Elsewhere in the region, economic momentum lost steam amid a slowdown in services activity.