Purchasing Managers Index: Europe: Difference between revisions

Purchasing Managers Index: Europe (view source)

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 === August 2023 ===
+Output in the eurozone economy declined at the fastest rate in nearly three years in August, latest HCOB PMI® survey data compiled by S&P Global showed. The overall retreat in activity was the fastest since November 2020, and broad-based across the manufacturing and services sectors as the latter contracted for the first time in 2023 so far.  New orders also dropped the most since late-2020, leading to companies completing outstanding work at the fastest rate in over three years. This resulted in one of the softest 12-month outlook in 2023 so far and a near-stalling of jobs growth
+“The eurozone didn't slip into recession in the first part of the year, but the second half will present a greater challenge. For, the once stabilizing services sector turned into a drag for the economy while manufacturing has not bottomed out yet, most probably. The disappointing numbers contributed to a downward revision of our GDP nowcast which stands now at -0.1% for the third quarter. “Input price increases surprisingly picked up putting the perspective of rapidly decreasing inflation into question. The prime suspect is likely the wage hikes, which are not necessarily in sync with the business cycle, given their often longer term nature. “Employers weren't too keen on beefing up their teams. The way things have been going down lately, it's a sign they'll be moving towards job cuts sooner, not later. Still, the decline in unfinished tasks and new orders doesn't seem severe enough at this point to trigger aggressive cuts."
+* HCOB Eurozone Composite PMI Output Index at 46.7 (Jul: 48.6). 33-month low.
+* Input price inflation accelerates for first time in nearly a year.
+* The weakening demand picture was reflected in data on capacity, as the level of outstanding business declined at a faster rate in August. Excluding the pandemic, the drop in backlogs in the latest period was the steepest since the second half of 2012.
+* The near-term outlook deteriorated in August as new business fell for the third month running and at the fastest rate since November 2020.
+* Exports of both goods and services fell for the eighteenth consecutive month, and at one of the fastest rates on record
+[[File:Screenshot 2023-09-05 093030.png|center|thumb|819x819px|<ref>https://www.pmi.spglobal.com/Public/Home/PressRelease/382c7872528a4f48bf03911ae648e7f1</ref>]]
 ==== Manufacturing ====
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 * HCOB Eurozone Manufacturing PMI Output Index at 43.4 (Jul: 42.7). 2-month high
 * HCOB Eurozone New Orders Index falls to 39.0, prompting firms to continue slashing their charges
+==== Services ====
+The HCOB Eurozone Services PMI Business Activity Index fell below the no-change mark of 50.0 in August to 47.9, from 50.9 in July and indicating the first decline in activity since December 2022. Moreover, the rate of contraction was the fastest since February 2021.
+* The volume of new business fell for the second month running, and at the fastest pace since February 2021. Demand for services has now contracted eight times since the second half of 2022.
+* New export business (including intra-eurozone trade in services) fell for the third month running, and at a faster rate. Looking ahead, expectations for business activity remained positive, although the degree of optimism was unmoved from July’s 2023 low.
+* With new contracts at service providers drying up in August, the level of incomplete business continued to fall. The rate of contraction was the strongest in two-and-a-half years. This led to greater caution around hiring as employment in the services sector rose at the slowest rate since February 2021
+* Input prices at service providers rose at the fastest rate in three months in August, and one that remained above the long-run survey average
 == References ==