Private activity in the eurozone slowed in August, but remains near record levels, according to the Purchasing Managers Index

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MADRID, September 3 (European press) –

Eurozone business activity in August registered a new “remarkable expansion”, although there was less motivation than that recorded in July, according to the Purchasing Managers’ Composite Index (PMI, for its English acronym), by IHS Markit and published on Friday.

Specifically, the composite index settled at 59 points during the eighth month of the year, compared to 60.2 in the previous month. The July data was the highest reading recorded by this indicator since June 2006. Thus, the August data represents one of the fastest growth rates observed in the last 15 years, as defined by IHS Markit.

In August there was a “sharp rise” in new orders from companies in the eurozone, albeit at a slower pace than in July. By sectors, the growth rate of new orders was higher for manufacturing than for services.

In this way, to meet these new demands, companies in the Eurozone increased their workforce “significantly” in August. The pace of growth was only “marginally weaker” than the 21-year high recorded in July.

“Eurozone companies posted another strong performance in August, based on the PMI data, which continues to indicate rapid rates of expansion in production and demand. The labor market has also performed well and this will further encourage the growth streak driven by the domestic market,” he said. Joe Hayes, chief economist at IHS Markit.