The composite (manufacturing and services) August Flash PMI (Purchasing Managers’ Index) dropped to its lowest level since November 2007. The service sector, which had been sustaining the Eurozone economies, is reported to be driving the August declines, while the rate of contraction in manufacturing slowed. The industrial sector of the Eurozone economy has been hit hard. With its services sector threatening to join the recession in manufacturing, the German economy is likely to underperform the other Eurozone economies in the second half of the year.France, the second largest Eurozone economy, is also in a downturn. Germany’s economic growth figure for this year looks likely to be negative, -0.3%.

Source: The Herald September 11, 2023 10:16 UTC