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Further Fall In Eurozone Manufacturing PMI’s

James Boston
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Further Fall In Eurozone Manufacturing PMI’s

Markit Economics has published the August round of Purchasing Managers Indices (PMI) for the Eurozone economies. The data is showing further deterioration in the already struggling European manufacturing sector. The headline Eurozone number has dropped to 50.7 for the month from 51.8 last month, market consensus of 50.8 was missed in this amalgamated figure, as it was in most of the individual reporting countries.

Germany’s number has come in at 51.4 this is off by a full figure from the July reading of 52.4, estimates were predicting a fall but only to around the 52.0 level. Russian sanctions are taking their toll on the Eurozone’s largest economy which is a significant exporter of industrial equipment.

The Italian number has crossed the key threshold of 50, this level represents the difference between expansion and contraction in the PMI index. The August reading is no showing at 49.8 compared to 51.9 in July, market consensus estimates were predicting a reading more in the region of 50.8.

France was the only economy to beat market expectations this month, the figure however fell from 47.8 to 46.9, analysts were predicting a number of 46.5. France’s manufacturing sector remains one of the weakest in the Eurozone.

The Spanish PMI reading has been reported as 52.8 last month, this is a fall from the July reading of 53.9 and misses the market consensus estimate for a level closer to 53.1.

The only gains this month came from the periphery economies of Ireland and Greece. The Irish figure posted an impressive gain to come in as the highest reported level in the Eurozone this round, it is currently reading at 57.3 compared to the 55.4 level experienced in July. The Greek figure also managed a gain and moved back to expansionary territory, August’s number is being reported as 50.1, up from 48.7 in July.

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