Eurozone growth sluggish in August
The 19-country eurozone lost some economic momentum in August, largely because of a slowdown in Germany, a closely watched survey has shown. Financial information company IHS Markit said its purchasing managers’ index – a broad gauge of economic activity – for the eurozone, fell to a 19-month low of 52.9 points in August from 53.2 the previous month. The fall was unexpected as the initial estimate for August was 53.3. In spite of the fall, the eurozone is still growing, albeit sluggishly as anything above 50 indicates expansion. IHS Markit said the August reading is pointing to a quarterly economic growth rate of 0.3 per cent. The firm did not assign any fundamental reason to the slowdown, such as uncertainty related to Britain’s decision in June to leave the European Union, but did note that Germany was “perhaps the biggest cause for concern” as output growth slowed to a 15-month low. Italy and France also saw modest rates of growth.