(Telestock) – Manufacturing in Europe continues to sufferconfirming itself as the weak link in the economy, while the tertiary sector acceleratesThis is what emerges from the data PMI Preliminary on the sentiment of purchasing managers of manufacturing and services companies, published this morning.
According to preliminary estimates by S&P Global, the index Manufacturing PMI fell further at 45.6 points from the previous 45.8, resulting lower than the 45.7 points expected by analysts. A threshold that remains lower than the critical one of 50 and that still denotes a contraction in activity. The PMI for services accelerates insteadwhich rises to 53.3 points from the previous 51.9 points and largely exceeds the expected 51.7 points. Consequently, the Composite PMI rises to 51.2 points from the previous 50.2, settling above the consensus (50.1 points).
Among the major European economies, the Germany shows a deterioration in the manufacturing PMI to 42.1 from 43.2 points, against a consensus of 43.4 points and a decline in the services PMI to 51.4 from 52.5 (below the 52.3 expected). In Francethe manufacturing PMI fell to 42.1 from 44 (44.4 points the consensus) and the services PMI rose to 55 from 50.1 (50.2 was expected).
“At first glance, the rebound in eurozone activity in August comes as a pleasant surprise. However, if we look more closely, we see that the data perhaps hide something uncertain. The boost is largely due to the increase in activity in the service sector in France,” he explains. Cyrus of the RubiaChief Economist at Hamburg Commercial Bank, adding “it is unlikely that this strength will continue in the coming months.”
“However, we are faced with a contrasting situation. The sector manufacturing remains stuck in recessionwhile that of the services appears to be growing at a decent rate. That said, with the stimulus of the recent Olympics in France fading and signs of waning optimism in the eurozone’s service industry, it is likely to be just a matter of time before the difficulties in the manufacturing sector begin to impact the tertiary sector as well.”