EUROZONE – Businesses in the euro area continue to be fatigued. According to preliminary data from the Purchasing Manufacturing Index (Pmi) for July, this is the seventh consecutive monthly contraction for companies in the euro area. The manufacturing PMI index calculated by Markit recorded a slight increase to 46,6 points compared to 46,5 in July, and much better than the estimates of 44,2. But the 50-point threshold indicates the difference between growth and decline in activity and for the Eurozone there are still many points left to reverse course. The services sector index dropped to 47,5 points from 47,9 in July and below estimates of 47,8.
GERMANY – The contraction of the PMI index of services in Germany was decidedly unexpected, dropping to 48,3 points from 50,3, thus passing from growth to recession. Again in August, the manufacturing index stood at 45,1 points, down for the sixth month in a row.
CHINA – The industrial sector of the Asian giant recorded the largest contraction in the last nine months in August. The flash estimate of the PMI-HSBC manufacturing index recorded the lowest since November, decreasing to 47,8 points from 49,3 in July: a figure that reinforces expectations of new economic stimulus measures by the Chinese authorities. The causes of this decline are a drop in orders, to their lowest since December 2008 and an increase in inventories "at the highest ever recorded".
