Eurozone Private Sector Shrinks Most In Nearly 3 Years

RTTNews | 647 दिनों पहले
Eurozone Private Sector Shrinks Most In Nearly 3 Years

(RTTNews) - The euro area private sector economy contracted the most in nearly three years in August with broad based deterioration across the manufacturing and services sectors, results of the purchasing managers' survey showed.

The HCOB composite output index fell to 46.7 in August from 48.6 in July, final data compiled by S&P Global revealed Tuesday. The initial score was 47.0 for August.

The below-50 score suggested that the private sector shrank for the third consecutive month. Moreover, output decreased at the fastest rate since November 2020.

Data showed that output declined in both the services and manufacturing sectors. The service sector ended a seven-month sequence of growth and goods production dropped for the fifth straight month.

The services Purchasing Managers' Index, or PMI, posted 47.9, down from 50.9 in July. Moreover, the pace of decline was the steepest since February 2021. The score was also below the initial estimate of 48.3.

"The eurozone didn't slip into recession in the first part of the year, but the second half will present a greater challenge," Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said.

"The disappointing numbers contributed to a downward revision of our GDP nowcast which stands now at -0.1 percent for the third quarter," the economist added.

The survey showed that the near-term outlook deteriorated in August as new business dropped for the third month in a row. Both manufacturers and service providers reported steeper declines.

Exports of both goods and services rose at one of the fastest rates on record. The twelve-month horizon improved slightly since July.

Manufacturers' backlogs declined continuously since June 2022 and outstanding work at service providers decreased in seven out of last twelve months.

With declines in both new and outstanding businesses gathering pace, data showed a near-stalling in employment growth. Jobs increased at the slowest pace in the current thirty-one consecutive month of expansion.

Input costs grew at the fastest pace in three months in August. The overall output price inflation eased to a two-and-a-half year low, but remained historically strong.

By nation, Germany and France posted the steepest declines in output, while more moderate falls were reported in Italy and Spain.

The downturn in the German private sector deepened in August with a renewed contraction in services activity and an accelerated fall in manufacturing output.

The composite output index posted 44.6 in August, down from 48.5 in July. The score signaled the biggest contraction since May 2020 and the reading was slightly below the flash score of 44.7.

The services PMI declined to 47.3 in August from 52.3 in the previous month. The flash score was 47.3.

France's private sector output fell for the third successive month in August. The composite output index registered 46.0 signaling the biggest fall in private sector activity since November 2020. The reading was down from 46.6 in July. The flash score was 46.6.

The services PMI slid more than initially estimated to 46.0 from 47.1 in the previous month. The score suggested the fastest decline in activity since February 2021.

Spain's private sector moved into the contraction territory in August. The composite output index registered 48.6 in August, down from 51.7 in July. The services PMI dropped to 49.3 from 52.8 a month ago.

Italy's private sector output shrank for the third consecutive month in August. The composite PMI recorded 48.2, down from 48.9 in July. The services business activity index slipped to 49.8 from 51.5 in the previous month.

टैग: EUR
read more
Eurozone Trade Surplus Declines To 3-Month Low

Eurozone Trade Surplus Declines To 3-Month Low

Eurozone trade surplus declined to a three month low in April as demand from the US softened following tariff hikes, official data revealed on Friday. The trade surplus declined to EUR 9.9 billion in April from EUR 37.3 billion in March, Eurostat reported. This was the lowest surplus since January. In the same period last year, the surplus totalled EUR 13.6 billion.
RTTNews | 14घंटे 31 मिनट पहले
Eurozone Industrial Output Falls For First Time In Four Months

Eurozone Industrial Output Falls For First Time In Four Months

Eurozone industrial production declined for the first time in four months in April as the positive impulse from frontloading of orders from the US faded, official data revealed Friday. Industrial output registered a monthly fall of 2.4 percent in April, offsetting March's 2.4 percent increase, Eurostat said. Production was forecast to drop 1.6 percent.
RTTNews | 16घंटे 34 मिनट पहले
ECB Indicator Shows Eurozone Wage Growth To Slow Sharply To 3.1% This Year

ECB Indicator Shows Eurozone Wage Growth To Slow Sharply To 3.1% This Year

A measure, based on the collective bargaining agreements in the euro area, suggested that negotiated wage growth is set to ease significantly this year, the European Central Bank said on Wednesday, which adds to expectations of inflation staying near the 2 percent target.
RTTNews | 2 दिनों पहले
Eurozone Investor Confidence Strongest In A Year: Sentix

Eurozone Investor Confidence Strongest In A Year: Sentix

Euro area investor morale rose to the highest level in a year in June, driven by the economic recovery in Germany, survey data from the behavioral research institute Sentix showed Tuesday. The investor sentiment index rose to +0.2 in June from -8.1 in May. This was the highest reading since June 2024 and remained well above economists' forecast of -6.0.
RTTNews | 3 दिनों पहले
Eurozone GDP Growth Accelerates To 0.6%

Eurozone GDP Growth Accelerates To 0.6%

The euro area economic growth doubled in the first quarter on household spending, investment and exports, official data revealed on Friday. Gross domestic product logged a quarterly growth of 0.6 percent in the first quarter, which was faster than the initial estimate of 0.3 percent, Eurostat said. This followed a 0.3 percent rise in the fourth quarter of 2024.
RTTNews | 7 दिनों पहले
German Industrial Output Drops; Exports Fall

German Industrial Output Drops; Exports Fall

German industrial production declined more than expected in April as the temporary boost from the frontloading of orders ahead of the US tariff hikes faded, data from Destatis revealed on Friday. Another data showed that Germany's trade surplus declined in April as exports to the US logged a double-digit decline amid a notable growth in imports. Industrial output declined 1.4 percent.
RTTNews | 7 दिनों पहले
ECB Cuts Interest Rates By 25 Bps As Inflation Forecasts Lowered

ECB Cuts Interest Rates By 25 Bps As Inflation Forecasts Lowered

The European Central Bank slashed its interest rates by 25 basis points on Thursday, in line with expectations, while the staff trimmed the euro area price growth projections for this year and next citing prospects of energy prices and stronger euro going forward.
RTTNews | 8 दिनों पहले
German Manufacturing Orders Rise Unexpectedly

German Manufacturing Orders Rise Unexpectedly

German manufacturing orders increased in April confounding fears that higher tariffs by the US administration would hit the factory sector, official data revealed Thursday. Factory orders rose 0.6 percent month-on-month in April, following a revised 3.4 percent rise in March, Destatis said. This was the second consecutive month of growth. Orders were expected to fall 1.0 percent.
RTTNews | 8 दिनों पहले