Economic Buzz: Eurozone Business Activity Falls In August

5 Sep 2022 , 03:28 PM

Latest PMI data suggested that the eurozone private sector moved further into contractionary territory during August as the service sector joined manufacturing in seeing output fall during the month. The decline was particularly marked in the euro areas largest economy, Germany. The seasonally adjusted S&P Global Eurozone PMI Composite Output Index posted below the 50.0 no-changed mark for the second month running in August, dipping to 48.9 from 49.9 in July. Although still only modest, the rate of contraction signaled in the latest survey period was more pronounced than that seen at the start of the third quarter. The S&P Global Eurozone PMI Services Business Activity Index dropped below the 50.0 no-change mark in August, bringing to an end a 16-month sequence of rising service sector output. At 49.8, the index was down from 51.2 in July and signaled a marginal decline in activity midway through the third quarter. The renewed contraction in business activity reflected further signs of demand weakness as new orders decreased for the second month running. The rate of decline in new business was modest, but quickened to the fastest since February 2021. Powered by Commodity Insights