Home›Bonds & Rates›Central Banks›Euro zone PMI steadies in August, supporting ECB rate…

Euro zone PMI steadies in August, supporting ECB rate path

Spain, Italy and France PMI readings suggested output and new orders kept growing in August, with price pressures stabilizing but inflation still elevated by historical standards.

Reported · Written up by our desk · Central Banks

Forexlive said euro area private sector business activity growth stayed in line with July, with both output and new order inflows rising at a similar solid pace and August demand improvement among the strongest since November.

The outlet cited country PMI details including Spain services at 57.8 for August, down from 58.3 previously, Spain composite at 55.8 versus 56.5, and Italy services at 55.2 versus 52.5, alongside Italy composite at 53.6 versus 52.5 and France final services at 48.0.

Forexlive added that employment expanded for the first time year-to-date, supported by solid and broad-based sales growth, while input cost pressures edged down and output prices increased at the same pace as in July.

Despite the stabilization in price pressures, the outlet said inflation remained high by historical standards and above levels seen immediately before the US-Iran conflict, and argued the ECB will likely be mindful of risks that higher price pressures could become embedded in inflation expectations as the conflict persists.

More like this

Sources