-Chris Williamson, IHS Markit
The business activity in the Euro area rose a bit in August as slight improvement within the territory of economic expansion was seen in the common monetary area largest countries of Germany and France.
The manufacturing purchasing managers' index, which is closely watched by economic policymakers in the single currency area, hit 53.3 this month that was slightly up from 53.2 in July. The bright headline figure belied a slowing in the growth of manufacturers' order books and a lower rate of new hires on the back of a drop in optimism in the region's dominant services sector. A reading below 50.0 signals a decline in activity, and a reading above that level indicates an expansion. Economists had estimated that the PMI fell to 53.0.
Official figures show the Euro zone economy slowed in the three months to June, having accelerated in the first quarter. The PMI's suggest the economy is on track to grow at a similar pace in the third quarter, although with a greater contribution from France, which saw output stagnate in the three months to June. The national PMI for the Euro zone's second-largest member recorded an unexpected jump in August, rising to a 10-month high of 51.6 from 50.1 in July.
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