Economic activity across the eurozone expanded for an eighth consecutive month in August, reaching its most robust level in fifteen months, according to a closely monitored survey published on Thursday, 21 August.
The HCOB Flash Eurozone purchasing managers’ index (PMI), compiled by S&P Global, climbed to 51.1 this month from July’s 50.9 reading. This sustained upward trajectory signals continued growth, as any figure exceeding the 50.0 threshold indicates economic expansion rather than contraction.
“Economic activity has picked up in both manufacturing and services,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted.
De la Rubia observed that “despite headwinds like US tariffs and general uncertainty, businesses across the eurozone seem to be coping reasonably well.”
Germany, functioning as both the eurozone’s largest economy and a crucial driver of European output, recorded its third consecutive monthly increase in production. This growth was principally underpinned by a solid expansion within its manufacturing sector.
Meanwhile, France demonstrated encouraging signs of stabilisation after previous setbacks, registering its most modest decline in output over the past year.
“France, which had been a drag in June and July, showed signs of stabilising in August. The same goes for services: France’s recession seems to be tapering off,” de la Rubia commented.
The survey further indicated that the remainder of the euro area continued to experience growing output, though the pace of this expansion moderated slightly compared to July’s performance.
