Eurozone PMI edges higher in August
The Eurozone economy expanded at a faster pace in August, data released on Friday showed.
Markit’s flash Eurozone Purchasing Managers’ Index (PMI) rose 0.2 points to 54.1 in August, marking the 26th consecutive month of expansion and beating estimates of a 53.7 reading.
The manufacturing PMI was unchanged at 52.4, but above expectations for a decline to 52.2, while the services PMI rose from 54 to 54.3, ahead of consensus for an unchanged reading.
Markit added that companies in both sectors attributed the increase in production to increased levels of incoming work, including stronger growth of new export orders in the manufacturing sector.
Meanwhile, average input prices climbed for the seventh consecutive month in August, although average output charges registered a slight decline.
Markit’s senior economist Rob Dobson said the PMI reading indicated the Eurozone was still experiencing a period of strong and sustained growth.
“The flash PMI suggests that the Eurozone is still experiencing one of its best periods of economic growth and job creation during the past four years,” he said.
Despite the ongoing crisis surrounding Greece, the Eurozone economy is forecast to grown 0.4% in the third quarter, Dobson added.
“GDP growth is tracking close to 0.4% so far in the third quarter, slightly above the 0.3% seen in the second quarter, highlighting the resilience of the economy,” he said.