Eurozone Business Activity Once Again Shows Improvement
Eurozone business activity pointed at a pick up in August. IHS Markit's Euro Zone Composite Final PMI rose from 54.3 in July to 54.5. August's surveys suggest that the Eurozone economic growth marked 0.4%. Still, investors are concerned that the treat of trade war will subdue the momentum.
Chris Williamson, chief business economist at IHS Markit noted: "The euro zone PMI shows the recent run of robust growth of business activity, new orders and employment extending into August," and: "However, the expansion is looking increasingly uneven and the business mood has become more unsettled during the summer. The downturn in optimism raises questions over whether this pace of growth can be sustained."
Indicator, accounting for the optimism hit an almost 2-year minimum at 61.6, dropping from 63.1. A PMI measuring the euro zone's service industry increased from 54.2 to 54.4. An index covering employment grew from 54.6 to the 11-year maximum of 55.3.