Eurozone business activity remained strong this month, only dropping from July’s two-decade high rate, as a rapid vaccination drive against the COVID-19 allowed businesses to reopen.
Source: IHS Markit
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IHS Markit’s Flash Composite Purchasing Managers’ Index dropped to 59.5 in August from 60.2 the previous month.
Chief business economist at IHS Markit states the eurozone’s economic recovery retained impressive momentum in August, with the PMI dipping only slightly from July’s recent high.
Businesses increased employment at a near record pace but were still unable to complete all new business coming in, building up a huge backlog of work. The composite employment index held at 56.1.
A PMI covering the region’s dominant service sector dropped to 59.7 from July’s 15-year high of 59.8. Demand only slowed marginally from July.
Manufacturers had another solid month, their PMI remaining well above the breakeven mark at 61.5, albeit below July’s 62.8. But supply delays again drove up costs of raw materials needed at the factories.