Euro area growth strong but market volatility is a risk, Markit says
The euro area´s economy was set to continue expanding at a solid pace in the third quarter thanks to stronger growth in Germany and Italy, a widely followed survey of economic conditions revealed.
Nonetheless, it was - by a far margin - the Spanish economy which recorded the sharpest rebound, while the French economy continued to stagnate.
“The upturn was stronger than recorded by the flash reading, thanks mainly to stronger growth in Germany and the best performance for over four years in Italy, where the PMIs are both pointing to 0.5% GDP growth in the third quarter. But it is Spain that remains the star performer among the largest Eurozone countries, with the PMI signalling another 1.0% GDP growth spurt in the third quarter," Chris Williamson, chief economist at Markit, said.
The survey compiler´s composite purchasing managers´ index for manufacturing and service sector activity in the Eurozone improved to a reading of 54.3 following a print of 53.9 in the month before.
Economists had forecast a reading of 54.1, in line with a preliminary or 'flash' estimate published in early August.
The services PMI rose to 54.4 after a print of 54.0 in July (consensus: 54.3).
On a more cautious note, Williamson added: “policymakers have little scope for complacency, however, as slower growth in the emerging markets and recent financial market volatility as well as a stronger euro have the potential to hit the economy’s performance in coming months."