HomeLive CommentsEurozone PMI services finalized at 47.9, Q3 GDP to contract -0.1%

Eurozone PMI services finalized at 47.9, Q3 GDP to contract -0.1%

Eurozone is grappling with weakening economic indicators, as PMI Services for August (final) slipped to a 30-month low of 47.9, down from July’s reading of 50.9. Composite PMI, which combines services and manufacturing data, also sank to a 33-month low of 46.7, down from July’s 48.6.

The fall in PMI scores was particularly evident in Germany (44.6) and France (46.0), which reported 39-month and 33-month lows, respectively. On the other hand, Ireland managed to score a 4-month high of 52.6, showing some resilience amid the general downturn.

Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, provided a sobering analysis. “The disappointing numbers contributed to a downward revision of our GDP nowcast, which stands now at -0.1% for the third quarter,” he said. According to de la Rubia, the services sector, a stabilizer for Eurozone economy, has turned into a “drag”.

Furthermore, he noted that input price increases have surprisingly accelerated, questioning the outlook for rapidly decreasing inflation. Employers are also becoming cautious about expanding their workforces, hinting that job cuts could be on the horizon.

Full Eurozone PMI services release here.

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