Economic activity in the euro area slowed down in August compared to July, especially as the business of the services sector was significantly reduced. That’s what the British market researcher Markit announced. The figures indicate that the economic recovery of the corona crisis is faltering.
The combined purchasing manager index of Markit, which measures industrial and service activity, reached a final position of 51.9 before August, compared with 54.9 in July. This is a little better than the 51.6 level Markit had reported in a preliminary estimate. A position of 50 or more indicates growth, below it indicates shrinkage.
The measure of service sector in the euro area, such as catering, retail and aviation, recorded a position of 50.5 as against 54.7 a month earlier. The index for industry in the euro area was 51.7, almost the same as in July.
“Services sector companies in the euro area saw the growth of activity almost stop in August. This increases the concerns that post-lockdown recovery is weakening in the midst of ongoing social constraints against corona,” said Markit.