US EditionEuro-Zone Business Activity at 15-Month High Despite Tariffs
Eurozone private sector activity rose to 51.1 in August, marking a 15-month high driven by manufacturing growth in Germany despite US trade policy challenges, S&P Global reported.
- The eurozone's private sector grew at its fastest rate in 15 months in August, with the composite PMI rising to 51.1 from 50.9 in July, signaling modest expansion.
- This growth follows a period of headwinds from a new 15 per cent US tariff on EU goods and ongoing economic uncertainty, although Germany’s manufacturing-driven output held up well and France showed signs of stabilizing.
- Manufacturing increased to 50.5, its highest in 38 months, while services eased slightly to 50.7, with foreign orders falling for a second consecutive month, reflecting cautious demand and spending.
- Economist Cyrus de la Rubia noted that the EU’s single market, along with steady domestic demand and tourism, has mitigated the impact of tariffs despite ongoing uncertainty.
- The data imply that although industry remains resilient, fragile growth depends on whether households regain spending confidence amid steady jobs and easing inflation, while the ECB is expected to keep interest rates at 2 per cent.
12 Articles
12 Articles
Europe Finds Fragile Stability: Industry Holds, Consumers Falter
Official data released today by S&P Global, the European Commission, and Eurostat show Europe’s private sector edging back to growth, though key weaknesses remain. The eurozone’s flash composite PMI for August reached 51.1, up from 50.9 in July. Manufacturing improved to 50.5, while services posted 50.7. Both are only just above the 50 line that […]
Morgan Stanley Market Consensus The PMI composite rose to 51.1 points in August, from July 50.9, and above the expectations of 50.6. The subscripts of Manufacturing and Services remained at 50.5 and 50.7 points, vs the forecasts of consensus of 49.5 and 50.8 respectively. Jens Eisenschmidt (Macro EU) comments that, although these data are not elevated from a historical point of view, they show no sign of the macro deterioration that he was expe…
According to the Flash PMI Index, private sector economic activity has grown most strongly in the euro area for almost a year and a half.
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