Business activity in Eurozone accelerated in August

Business activity in Eurozone accelerated in August, as Purchase Managers Index rose by 0.1 points to 53.3 points, which the highest level in seven months. The index is only slightly above average for the year, so the growth in the Eurozone will probably be the same as in the first half. The business activity in service sector increased from 52.9 points in July to 53.1 points in August, which in turn is the highest value of three months. However, the index in production sector declined from 52.0 points in July to 51.8 points in August, reaching quarterly bottom.

Growth in volume of production in manufacturing and services is accelerating. Only the number of new orders are delaying, which affected the business activity and PMI in the sector of production. It reflected to slower pace of hiring, which in turn suggests that growth may weaken in coming months.

The PMI in Germany decreased. The activity in manufacturing sector slowed from 53.8 to 53.6%, while in services dropped from 54.4 to 53.3 points.

In France the PMI of manufacturing sector decreased from 48.6 points to 48.5 points, but index in services recorded sufficient growth from 50.5 points to 52.0 points.

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