The activity in French industry showed a small growth in August, while economists had on average expected a slight contraction. This was apparent from the purchasing manager index of market researcher Markit. The decline continued in Germany.
That index recorded a provisional level of 51 for August compared to 49.7 in July. Economists generally predicted a level of 49.5. A level above 50 indicates growth, below that shrinkage. The index for the French service sector was 53.3 for August compared to 52.6 a month earlier. The composite index, including industry, came in at 52.7 compared to 51.9 in July.
German industry contracted in August again. That index stood at 43.6 against 43.2 in July. The consensus here was 43. This means the eighth month in a row for industry in Germany. The index for the German services sector was 54.4 and the composite indicator was 51.4.
The purchasing managers’ index for the euro area industry was 47 against 46.5 in July. Here, the average was 46.2. For the services sector, the index was 53.4 compared to 53.2 in July. The composite index was 51.8 from 51.5 a month earlier.