Eurozone Aug business activity contracts at faster pace - flash PMI

(Sharecast News) - Eurozone business activity contracted at an accelerating pace in August as the region's downturn spread further from manufacturing to services, according to PMI survey data published on Wednesday. The S&P Global composite index flash reading fell to 47.0 from 48.6 in July, its lowest since November 2020. If pandemic months are excluded, the latest reading was the lowest since April 2013.

A mark of 50 separates contraction from expansion.

Both manufacturing and services sectors reported falling output and new orders, albeit with the goods-producing sector registering by far the sharper rates of decline, S&P said.

"Hiring came close to stalling as companies grew more reluctant to expand capacity in the face of deteriorating demand and gloomier prospects for the year ahead, the latter sliding to the lowest seen so far this year," it added.

"While inflationary pressures continued to run far lower than seen over much of the past two-and-a-half years, led by falling manufacturing prices, August saw headline rates of input cost and selling price inflation tick higher due in part to upward wage pressures."

Reporting by Frank Prenesti for Sharecast.com