Growth of Eurozone Manufacturing Activity Slowed

Forex News

Growth of the Eurozone manufacturing sector slowed to a near two-year low in August, amid escalation of the global trade war. IHS Markit's August final manufacturing Purchasing Managers' Index (PMI) fell to 54.6 in August from July's 55.1, in line with expectations. The indicator pointed to the slowest growth since November 2016.

Manufacturers are increasingly concerned about a growing global trade dispute. Business expectations among manufacturers were the second-lowest since November 2015. The future output index, which measures optimism, fell from 62.4 to 61.0 (its second lowest reading since late 2015).

Meanwhile, Germany's IHS Markit/BME manufacturing PMI fell more-than-estimated to 55.9 in August from 56.9 in July and its joint-lowest reading in the past year-and-a-half.