- Rob Dobson, senior economist at Markit
Private business growth in the Euro zone slowed more than expected in August, as manufacturing and service sectors activity declined, fuelling even more concerns over the region's growth outlook. The Composite Flash PMI, which is based on surveys if thousands companies across the Euro bloc, dropped to 52.8 from July's reading of 53.8, coming in against expectations for a 53.4 figure. Nevertheless, the indicator has been above the 50-point threshold, which separates contraction from expansion, for the 14th consecutive month. Still, the euro zone has also yet to feel the full effect of escalating tensions with Russia.
Meanwhile, manufacturing activity in Europe's top economies contracted, suggesting they are struggling like smaller members of the Euro community. German manufacturing PMI dipped to a seasonally adjusted 52.0 in August from a final reading of 52.4 a month earlier. Meanwhile, the preliminary services PMI inched down to a seasonally adjusted 56.4 from July's 37-month high of 56.7. Elsewhere, manufacturing activity in France contracted at the fastest pace in more than a year in August, with the corresponding gauge falling to a seasonally adjusted 46.5 in August from 47.8 the previous month. The preliminary services purchasing PMI, however, improved to the highest level in five months of 51.1 from 50.4 in July and better than expectations for a reading of 50.0.
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