Preliminary Aug services PMI 53.3 vs 51.9 in July (Il Sole 24 Ore Radiocor) - London, 22 Aug - In August, the eurozone's purchasing managers' index (PMI) for the manufacturing sector fell to an eight-month low of 45.6 from 45.8 in July, according to preliminary data released by S&P Global and Hamburg Commercial Bank.

The manufacturing output index instead inched up to 45.7 from 45.6 over the period, a two-month high.

The services sector PMI increased to a four-month high of 53.3 from 51.9 in July.

The composite output index, a weighted average of services PMI and manufacturing output, increased to 51.2 in August from 50.2 in July, rising to a three-month high.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

'At first glance, this looks like a pleasant surprise: activity in the Eurozone picked up in August, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "But a closer look at the numbers reveals that the underlying fundamentals might be shakier than they appear. The boost largely comes from a surge in services activity in France, with the Business Activity Index jumping by almost five points, likely linked to the buzz surrounding the Olympic Games in Paris. It's doubtful this momentum will carry over into the coming months, however. Meanwhile, the overall pace of growth in the services sector has slowed down in Germany, and the eurozone's manufacturing sector remains in rapid decline.

'It's a tale of two worlds. The manufacturing sector remains mired in recession, while the services sector still appears to be growing at a decent clip. But with the temporary Olympic boost in France fading and signs of waning confidence across the Eurozone's service industry, it's likely only a matter of time before the struggles of the manufacturing sector start weighing on services too.".

AAA-Hob

(RADIOCOR) 22-08-24 10:16:21 (0220) 5 NNNN