Eurozone’s private sector expands modestly in August

The report from IHS Markit revealed on Wednesday that growth in activity in Eurozone’s services sector accelerates in August.

According to the report, the IHS Markit Eurozone PMI Services Business Activity Index came in at 53.5 in August, up from 53.2 in July. Germany and Ireland recorded the strongest gains in activity during August, while Italy remained a notable laggard, recording only a marginal increase in activity since July.

Higher overall activity was supported by a combination of an increase in new work and a reduction in levels of work outstanding, the report said. Meanwhile, employment growth was sustained in August, but at the weakest rate since the start of the year as worries about future activity grew. Confidence regarding activity in 12-months’ time was the joint-weakest recorded by the survey since June 2013.

The IHS Markit Eurozone PMI Composite Output Index rose modestly to 51.9 in August from 51.5 in the previous month, supported by a solid expansion of service providers. Meanwhile, goods producers endured another period of falling output. At the national level, France performed best, with growth driven by a solid service sector performance and a renewed rise in manufacturing output. Spain also registered solid growth, and the fastest in four months, whilst modest gains in output were seen in both Germany and Ireland. Italy, meanwhile, was the only nation to experience a slowdown in growth compared to July and, by registering only a marginal incease in private-sector output, was the weakest-performing nation.