Eurozone August business activity gains Olympic lift, PMI shows

Published Wed, Sep 4, 2024 · 05:03 PM

HCOB’s composite Purchasing Managers’ Index for Eurozone, received a boost from France hosting the Olympic Games and seen as a good gauge of overall economic health, jumped to 51 in August from July’s 50.2. PHOTO: REUTERS

DeeperDive is a beta AI feature. Refer to full articles for the facts.

EUROZONE business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed.

HCOB’s composite Purchasing Managers’ Index for countries in the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, jumped to 51 in August from July’s 50.2.

That exceeded the 50 mark separating growth from contraction for a sixth consecutive month but was a tad below a preliminary 51.2 estimate.

“The Olympic Games in Paris brought plenty of victories, and the French service sector was certainly among the winners. But the big question is whether this boost is sustainable,” said Cyrus de la Rubia at Hamburg Commercial Bank.

“The positive vibes from the Games and the ongoing Paralympics might carry through into September in part, but we expect the slowdown in growth, which started in May, to likely resume in the coming months.”

Overall demand in the 20-member currency union fell for a third month, suggesting weakness ahead. The composite new business index was below the 50 threshold at 49.1, albeit slightly ahead of July’s 49.

Eurozone August factory activity stuck in a rut, PMI shows

Aside from a slowdown in wage gains, the ECB’s inflation outlook needs corporate profit margins to absorb some of the rise in labour costs and productivity to improve.

Eurozone wage growth slows, boosts case for another ECB cut

Office attendance is rising across Europe, as more and more businesses encourage their employees with mandates and incentives to return.

Europe office demand rises on boost from banks and insurers

HCOB’s preliminary composite Purchasing Managers’ Index, compiled by S&P Global, bounced to 51.2 this month from July’s 50.2, moving away from the 50 mark that separates growth from contraction.

Eurozone business activity gets boost from Olympics, PMI shows

Commercial property prices have plunged nearly a tenth last year due to higher borrowing costs and weak demand as firms adapt to post-pandemic realities, according to the ECB.

Some eurozone banks too optimistic in valuing commercial property, ECB finds

The euro economy has sent distress signals recently, with consumers unwilling to spend despite outsized wage increases, private-sector activity grinding to a halt, and confidence in its largest member – Germany – tanking.

Eurozone employment growth weakens in sign of trouble ahead

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

A final PMI for the bloc’s dominant services industry leapt to 52.9 from 51.9, offsetting a continued contraction in the manufacturing sector.

But optimism about the year ahead waned among services firms. The business expectations index fell to 59.1 from 60.4, its lowest reading this year. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Eurozone Purchasing Managers Index

Share with us your feedback on BT's products and services

Feedback