The tertiary sector in Italy is still contracting, but the reference indicator has gained one point in the last month. The Markit/Adaci PMI services index stood at 44,0 points from 43,0 in July. It is the fifteenth consecutive month below 50, which marks the boundary between expansion and recession, but there is a trend reversal. Analysts were expecting a worse result, equal to 43,6 points. The sector is penalized by a further decline in new orders, albeit at a slower pace than in the previous month. The pace of job cuts in the services sector accelerated in August, with the employment indicator falling to its lowest level since April.
EUROZONE – In the 17 euro countries, the PMI services index fell in August to 47,2 points, from 47,9 in July and less than the expectations which projected 47,5. The composite PMI index, which considers both manufacturing and services production, recorded an inverse trend to that of expectations: analysts expected an increase to 46,6 points, from 46,5 in July, while in August stands at 46,3 points.
FRANCE – In August, the PMI services index dropped below the 50-point threshold to 49,2, well below expectations of 50,2. Tertiary companies have cut jobs at the fastest rate for over two and a half years: hopes of an economic recovery in the coming months are worsening.
SPAIN – The Services PMI index elaborated by Markit Economics rose to 44,0 points from 43,7 points in July, exceeding the expectations of insiders fixed on an index equal to 43,3 points.
GERMANY – Bad news for the Teutonic neighbor. The Services PMI fell to 48,3 points in August from 50,3 points in July, worse than the expectations of analysts who expected an index unchanged compared to the previous month. The index thus falls below the value of 50 points, signaling a slight contraction in the German tertiary sector. Looking at the Composite index, it is the lowest figure since June 2009 at 47,0 points from 47,5 points in July.
CHINA – The services sector, which in the Asian giant accounts for about 43% of GDP, slowed its growth in August, reaching its lowest level for a year. Indeed, the HSBC PMI index fell to 52,0 points from 53,1 in July. However, it still remains above the 50-point threshold that separates growth from contraction. Instead, the increaseemployment index, which rose to 52,7, the highest since November. While input prices are at their highest since May and these data partly explain the drop in the manufacturing PMI which dropped to 47,6 points.
