adminBRUSSELS. — Eurozone business activity picked up sharply in August, hitting a 26-month high point as the economy climbed out of a record recession, a closely watched survey showed yesterday. The Composite Purchasing Managers’ Index compiled by Markit Economics jumped to 51,7 points for August from 50,5 in July, pushing further beyond the 50-points boom-or-bust line.
Analysts questioned by Dow Jones Newsires had expected an August reading of 51 points after the Composite PMI moved into positive territory in July for the first time in 18 months.
Markit said its separate PMI for the services sector — which accounts for the bulk of economic activity —rose to 51 in August for a 24-month high, from 49,8 in July.
The manufacturing sector PMI hit a 26-month high of 51,3 points, up from 50,3 in July.
Recent data showed that the 17-nation eurozone grew 0,3 percent in the second quarter compared with the first, breaking a record 18-month recession which has cost millions of jobs and tested the single currency bloc to the limit.
The PMI report yesterday showed this recovery was gaining momentum, said Markit chief economist Chris Williamson.
“So far, the third quarter is shaping up to be the best . . . since the spring of 2011,” Williamson said, cautioning that the bloc was not yet entirely in the clear.
“The upturn is being led by Germany, where growth accelerated again in August, driven in turn by rising domestic and export demand,” he noted.
“A big question mark still hangs over France”s ability to return to sustained growth,” he said, with domestic demand “lacklustre” in the eurozone’s second-biggest economy.
At the same time, it was positive that data from the weaker eurozone periphery countries “continued to improve . . . suggesting that a long-awaited recovery seems to be taking shape”, Williamson said. — AFP.
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