The company’s composite PMI, seen as a good indicator of how businesses in the manufacturing and services sectors are doing, fell to 49.2 from 49.9 in July
For the second month in a row, business activity decreased in the Eurozone in August, according to early survey data from S&P Global, as consumers cut spending due to high prices. In addition, manufacturing companies are also affected by supply chain constraints.
The company’s composite PMI, seen as a good indicator of how businesses in the manufacturing and services sectors are doing, fell to 49.2 from 49.9 in July. This index value is the lowest since February 2021. Any value below 50 points indicates a decrease in activity.
“The latest PMI data for the Eurozone shows that its economy contracted in the third quarter of the year,” said Andrew Harker, chief financial officer at S&P Global.
Demand also moved downwards for the second month in a row, with the index of new business operations standing at 47.7 units, roughly the same as in July.
THE PMI for the services sector fell to 50.2 from 51.2 points, suggesting activity moved in line with last month’s levels.
Although services firms increased their prices at a slower pace in August, the producer price index was well above the long-term average, coming in at 59.9 from 62.1 in July.
“Cost-of-living pressures stalled the recovery in the services sector that took place after pandemic restrictions were lifted, while manufacturing remained in recession in August,” Harker said.
The manufacturing PMI fell to 49.7 from 49.8, the lowest level since June 2020, while the manufacturing output index stood at 46.5 from 46.3 in July.
RES-EMP
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