July Eurozone PMI Manufacturing Index Strengthens To 57.4, Services Sector Slows

Marco Green
August 23, 2017

The flash Markit Eurozone PMI manufacturing index strengthened to 57.4 for August from 56.6 the previous month.

The index also remained above the 50 threshold that separates expansion from contraction for the 12th consecutive month and rose to the highest since May.

Some concerns over Germany's economic future were expressed in Tuesday's ZEW index of economic optimism in August, where a "high degree of nervousness" was apparent.

Manufacturers recorded an "impressive" performance, with export orders surging at the fastest pace in more than six years, IHS Markit said, adding that demand in services grew at the slowest rate since January.

Manufacturing PMI registered its third-fastest rate of growth in almost four years, buoyed by new export orders, which increased at the sharpest rate since May 2010. The expected reading for the month was 55.8. Economists in a Bloomberg survey predicted an unchanged reading.

"The latest data paint another positive picture of the French private sector economy, with further strong expansions in both new business and output", Alex Gill, an economist with IHS Markit said. The increase was unexpected - most forecasters were predicting a modest fall.

European Central Bank policy makers are set to start a discussion about the future path of monetary stimulus in September, when new economic projections will be published.

Stocks found some support, and were up off their earlier lows, but still in negative territory in mid-morning trade.

Other reports by Click Lancashire

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