Eurozone PMI Manufacturing dropped slightly to 51.7 in August, down from 51.8, below expectation of 53.0. PMI services tumbled to 50.1, down from 54.7, missed expectation of 54.0. PMI Composite dropped to 51.6, down from 54.9.
Andrew Harker, Economics Director at IHS Markit said: “The eurozone’s rebound lost momentum in August, highlighting the inherent demand weakness caused by the COVID-19 pandemic. The recovery was undermined by signs of rising virus cases in various parts of the euro area, with renewed restrictions impacting the service sector in particular…The eurozone stands at a crossroads, with growth either set to pick back up in coming months or continue to falter following the initial post-lockdown rebound. The path taken will likely depend in large part on how successfully COVID-19 can be suppressed and whether companies and their customers alike can gain the confidence necessary to support growth.”
