Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 54.6 points in August this year, down from July’s 55.1 points and remaining unchanged when compared to the earlier flash estimate of 54.6 points. The final IHS Markit Eurozone PMI recorded the slowest growth since November 2016.
The euro zone manufacturing output increased further in August, thanks to the growth reaching the highest level in three months, although the expansion in new orders rose at the slowest rate for two years. According to the data recorded in August, new export orders increased at a rate unchanged from July’s almost two-year low.
“Worries about trade wars and the damaging impact of tariffs, as well as Brexit and other political worries, all contributed to a dampening of business optimism about the year ahead. Business expectations were the second-lowest since November 2015,” stated Chris Williamson, chief business economist at IHS Markit. “In this environment, it was not surprising to see job creation slip to the lowest for one and-a-half years, albeit remaining relatively robust,” he added.