Preliminary Data Shows Health of Eurozone Slowly Increasing

Flash estimates for this month’s eurozone Purchasing Mangers’ Index show slight improvements in both manufacturing and services sectors, which reported acceleration in the rate of expansion and an increase in new work, including stronger growth of new export orders at manufacturers.

Germany demonstrated solid growth with job creation hitting a 44-month peak, while France’s economic output increased for the seventh-consecutive month, according to the Markit Flash Eurozone PMI. The French manufacturing sector, however, did report job losses.

A turnaround in manufacturing appears to be “the key to getting France fully back on track,” said Rob Dobson, Markit’s senior economist. The sector still offsets “much of the recent gains seen [by] French service providers,” Dobson explained.

“On the price front, average selling prices are still holding broadly steady across the eurozone in August, while cost inflation was registered for the seventh successive month,” he said. “While this suggests that deflationary pressures remain contained at present, falls in the indices for both price measures during the latest survey ensure a watchful eye will be kept on the trend in coming data releases.”

- Jennifer Lehman, NACM marketing and communications associate

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