Euro­zone growth slug­gish in Au­gust

7 Days in Dubai - - BUSINESS -

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.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.