- Oliver Kolodseike, economist at Markit
Activity in the Euro zone manufacturing sector remained robust in August, while services also kept momentum. The flash manufacturing PMI for the 19-nation region came in at 52.4 points this month, the same as in July, whereas analysts had predicted a slight setback to 52.2. At the same time, the currency bloc's services PMI climbed to 54.3 points, compared with 54.0 in the preceding month. As a result, composite PMI increased to 54.1, up from 53.9 in July.
In Germany, the Euro zone's powerhouse, manufacturing sector remained firmly in expansion, with the flash manufacturing PMI surging to 53.2 points in August, up from 51.8 a month earlier. The services sector also enjoyed a robust activity growth in the measured month, with the corresponding gauge coming in at 53.6. Meanwhile, consumer confidence in Germany was hit by the escalating Greek debt crisis, with the forward-looking Gfk consumer climate sliding to 9.9, down from 10.1. In France, factories failed to regain momentum this month, as flash manufacturing PMI declined to 48.6, from 49.6 seen in July. The reading stayed below the crucial 50-mark, which separates contraction from expansion. However, the flash services PMI stayed above the threshold, coming in at 51.8, compared with 52.0 in July.
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