By Xavier Fontdegloria
Eurozone’s services sector continued to expand at a strong pace in August, signaling little economic impact from the Covid-19 Delta variant so far, according to a survey of purchasing managers.
The final reading for the eurozone’s services PMI for August was 59.0, data from IHS Markit showed Friday. The reading is below the 59.8 registered in July and lower than the 59.7 preliminary estimate. A reading above 50 indicates an expansion an activity, while below this threshold signals a contraction.
“The benefit of looser lockdown restrictions has fuelled two of the best expansions since mid-2006 in July and August, but a step down since the preliminary number tells us that this growth momentum is fading,” Joe Hayes, senior economist at IHS Markit, said.
Despite the slight slowdown, the data sill point to rapid rates of expansion in output and demand, he said.
The eurozone’s composite output index, which gauges activity in both the manufacturing and services sectors, fell to 59.0 in August from 60.2 in July.
“Another strong quarter-on-quarter rise in GDP is on the cards for the third quarter, and we’re certainly on track for the eurozone economy to be back at pre-pandemic levels by the end of the year, if not sooner,” Mr. Hayes said.
Write to Xavier Fontdegloria at [email protected]