Euro area PMIs show ray of hope

The composite Purchasing Managers' Index (PMI) for manufacturing and the services sector in the euro area rose to 51.1 in August from 50.9 in July. Economists surveyed in advance had expected a slight decline. The mood in the manufacturing sector improved significantly (from 49.8 to 50.5). The index for services, on the other hand, fell slightly (from 51.0 to 50.7).

While the composite PMI in Germany rose only moderately (from 50.6 to 50.9), it increased more sizeably in France from 48.6 to 49.8. However, the composite PMI in France has fluctuated noticeably over the last twelve months. The smaller increase in the PMI in the eurozone also suggests that the trend in other euro area economies was weaker than in France and Germany.

Today's figure implies that the sentiment indicator for the euro area is continuing its modest recovery since the beginning of the year. The indicator remains in a range in which the economy has grown slightly in the past. The subdued development also points to only very moderate economic growth this year.

For full text see attached PDF-Version.