Euro zone August business growth keeps up solid pace by Shrutee Sarkar (Read more…)
Euro zone business growth maintained a solid clip in August, driven by the best manufacturing performance in 6-1/2 years despite a strong euro, easily offsetting a mild slowdown in services growth, a key private sector survey showed on Wednesday.
Taken together with a mild pickup in price pressures, the data is likely to support expectations that the European Central Bank will proceed later this year with making plans to scale back its multi-billion euro monthly asset purchases.
The Flash Eurozone Composite Purchasing Managers’ Index (PMI), generally considered a good indicator of overall economic growth, edged up slightly to 55.8 in August from 55.7, beating the median Reuters Poll estimate of 55.5.
The momentum was underpinned by strong manufacturing growth in both of the euro zone’s biggest economies, Germany and France, where manufacturing PMIs surged above even the most optimistic forecasts.