The latest readings for the eurozone signal a continuation of the recent strong performance of the currency bloc’s economy, according to the Markit Flash Eurozone Purchasing Managers’ Index (PMI).
The survey data over the first two months of the quarter are consistent with only a fractional easing in the rate of growth of GDP from the 0.6% rise in Q2. There was further evidence of growth cooling in the service sector, where both business activity and new orders rose at the weakest rates since January.
However, this was counterbalanced by further impressive manufacturing data as goods producers were able to secure new export orders at the fastest pace in six-and-a-half years.
Stronger order inflows added to capacity pressures, with manufacturing backlogs increasing to the greatest extent since mid-2006. Both input costs and output prices increased at faster rates in August.
Overall, this is another positive set of numbers for the euro area, which continues to enjoy its best growth spell for a number of years.
Source: Markit economics, https://www.markiteconomics.com