Eurozone flash composite PMI came in at 53.3 for August to top the consensus estimate of 53.1 while Eurozone’s manufacturing PMI stood at 51.8 vs. a 52.0 consensus. Overall the composite PMI index combining both sectors pointed to a slight rise in activity in August, suggesting any uncertainty caused by the Brexit vote is having a limited impact so far.
Other Eurozone PMI surveys give latest clues on Brexit aftermath, including those of France and Germany’s. PMI surveys for France, Germany and the Eurozone offer the latest insight into how well the Private Sector is performing in those economies. The surveys for August, which cover the services and manufacturing sector indicate diverging fortunes for Europe’s two largest economies, with Germany outperforming France.
The flash PMIs for Germany show that private sector output continued to grow in August, but at a slower rate than July. The composite index combining manufacturing and services slipped to 54.4 in August from 55.3 in July, economists have predicted a 55. The flash manufacturing PMI also dipped slightly to 53.6 from 53.8 last month.
The French flash PMIs are slightly better than expected as the manufacturing sector shrank to 48.5 (where anything below 50 signals contraction); but the services sector rose to 52 in August from 50.5 in July. The two Makit surveys for France together, give a composite headline index of 51.6 in August, which is higher than July’s 50.1 and can be read as an indication that growth in the French private sector picked up modestly.
It is also worth noting that U.K. also had some positive data today as export order books at UK manufacturing firms were the strongest in two years in August according to the CBI. The business lobby group suggested that the weakness of the pound, is actually making British-made goods cheaper abroad. Of the 505 firms surveyed for the CBI’s industrial trends survey, 21% said export orders were above normal, and 27% said they were below leading to an overall balance (combining exports and domestic orders) of -5%, just below July’s -4%. Output growth slowed to a balance of +11% from +16% in July. However, it should be noted that the pound’s weakness is a double-edged sword for the Britons, as it benefits exporters but also pushes up costs and prices.