The recession continues in the manufacturing industry of the euro area, with a slight improvement in the trend which however appears to be downsized in the final data of the index among procurement managers. In August, the Purchasing managers index (Pmi) rose to 45,1 points, from 44 points in July, according to reports from the research company Markit Economics, with a slightly lower value than the 45,3 points indicated in the preliminary estimate. It remains well below 50 points, the threshold between growth and decline in activity.
Weak demand, reports Markit, affects production and employment of industrial companies in the currency area. Meanwhile in Italy the dynamics of the crisis in manufacturing has worsened again, with its PMI index up 43,6 points from 44,3 in July which finished at its lowest level since October 2011. The latest data showed that Italy's manufacturing sector has slipped further into recession,” he warned. Phil Smith, an economist at Markit quoted in a statement. "Performance will weigh heavily on third quarter GDP."
