Eurozone economy is losing momentum in August 2016, as the indicator for growth in the private sector fell to its lowest level since early 2015. The Purchase Managers Index (PMI) in manufacturing and service sectors fell to 52.9 from 53.2 points in July, below the earlier forecast of 53.3 points. The decline is largely due to the slower pace of expansion of Germany, which is the largest economy in the Eurozone. The report comes just days before the European Central Bank held its first political meeting after the summer holidays.
Economists expect central bankers to be forced to add more stimulus to keep the recovery and boost inflation, though they are divided on when to declare new measures.
The growth in new orders slowed to the weakest level since January 2015 and signs to create new jobs disappear.
The slowdown in Germany is probably the biggest cause for concern. Output growth is the weakest 15 months, but the economy still performs better than that of France, where expansion has accelerated to a 10-month high.
The PMI in services also fell slightly from 52.9 points in July to 52.8 points.
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