Eurozone August final services PMI 59.0 vs 59.7 prelim

Latest data released by Markit – 3 September 2021

  • Composite PMI 59.0 vs 59.5 prelim
The preliminary report can be found here. A bit of a revision lower as noted with the German report earlier but this just reaffirms a resilient expansion in euro area services activity despite a slight slowdown in momentum. Markit notes that:

“It was another solid result for euro area businesses in August, according to the PMI numbers, which still point to rapid rates of expansion in output and demand. The labour market is also performing well and will further encourage this domestic-driven growth spurt.

“The benefit of looser lockdown restrictions has fuelled two of the best expansions since mid-2006 in July and August, but a step down since the preliminary ‘flash’ number tells us that this growth momentum is fading.

“While growth will naturally lose some impetus as the post-lockdown boom peters out, there are a number of other downside factors at play. The Delta variant has taken hold in Europe, while further material shortages and transport bottlenecks continue to restrain business activity. Rampant cost increases also persist, but slightly weaker rates of input and output price inflation provided some respite to both businesses and consumers alike, however.

“Regardless, another strong quarter-on-quarter rise in GDP is on the cards for the third quarter, and we’re certainly on track for the eurozone economy to be back at pre-pandemic levels by the end of the year, if not sooner.”

Go to top