The Eurozone manufacturing sector slowed its pace of expansion in the month of August, the latest manufacturing activity survey from IHS/Markit research showed.
The Eurozone manufacturing purchasing managers index (PMI) dropped to 54.6 in August while services PMI edged higher to 54.4 versus 54.2 last.
The IHS Markit Eurozone PMI Composite rose from 54.3 in July to 54.4 in August, hitting fresh 2-month highs.
Comments from Chris Williamson, Chief Business Economist at IHS Markit:
“The survey data indicate that the eurozone economy looks to have continued to grow at a steady rate in August, raising hopes that the third quarter could see GDP growth match the 0.4% expansion seen in the second quarter. In fact, the survey evidence suggests that the official data so far this year could yet be revised slightly higher.”
“Jobs growth also remains encouragingly robust, which should help further stimulate consumer spending and help offset signs of continuing weakness in exports.”
“With the indicators of current activity, employment and price gauges remaining elevated, the August survey sends a hawkish signal to policymakers. But the forward-looking indicators suggest the business mood could cool as summer passes.”
“Warning lights are flashing. Analysis of past data indicates that demand needs to pick up to sustain current output and employment growth in coming months. Yet the risks seem tilted to the downside.”
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