Euro zone August business activity gains Olympic lift, PMI shows
LONDON, Sept 4 (Reuters) -Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed.
HCOB's composite Purchasing Managers' Index for countries in the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, jumped to 51.0 in August from July's 50.2.
That exceeded the 50 mark separating growth from contraction for a sixth consecutive month but was a tad below a preliminary 51.2estimate.
"The Olympic Games in Paris brought plenty of victories, and the French service sector was certainly among the winners. But the big question is whether this boost is sustainable," said Cyrus de la Rubia at Hamburg Commercial Bank.
"The positive vibes from the Games and the ongoing Paralympics might carry through into September in part, but we expect the slowdown in growth, which started in May, to likely resume in the coming months."
Overall demand in the 20-member currency union fell for a third month, suggesting weakness ahead. The composite new business index was below the 50 threshold at 49.1, albeit slightly ahead of July's 49.0.
A final PMI for the bloc's dominant services industry leapt to 52.9 from 51.9, offsetting a continued contraction in the manufacturing sector.
But optimism about the year ahead waned among services firms. The business expectations index fell to 59.1 from 60.4, its lowest reading this year.
Reporting by Jonathan Cable
Editing by Christina Fincher
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
