Eurozone flash composite PMI unexpectedly nudges up in August

Markit’s flash eurozone composite purchasing managers’ index unexpectedly nudged up to a seven-month high in August.

The composite PMI printed at 53.3 compared to 53.2 the month before, beating expectations for it to edge down to 53.1.

The services PMI rose to 53.1 from 52.9 in July, which was a three-month high and ahead of expectations for a reading of 52.8.

Meanwhile, the manufacturing PMI slipped to 51.8 from 52.0, missing forecasts for it to be unchanged and reaching a three-month low.

Chris Williamson, chief business economist at IHS Markit, said: “The August flash PMI indicates that the eurozone remains on a steady growth path in the third quarter, with no signs of the recovery being derailed by ‘Brexit’ uncertainty.

“While the resilience of the PMI in August will add to the belief that the ECB will see no need for any immediate further stimulus, the weakness of the overall pace of expansion and disappointing trends in hiring, order books, business optimism and prices all suggest that policymakers will keep the door open for more stimulus later in the year.”

Stephen Brown, European economist at Capital Economics, said: “August’s slight rise in the euro-zone composite PMI suggests that, despite shrugging off the UK’s Brexit vote, economic conditions remain fairly subdued.”