2018.09.0504:24:00UTC+00Eurozone Private Sector Expands Slightly More Than Estimated

The euro area private sector expanded slightly more than initially estimated in August, final data from IHS Markit showed Wednesday.

The composite output index rose to 54.5 in August from July's 54.3. The score was marginally above the flash estimate of 54.4.

Both manufacturing production and service sector activity rose at similar and slightly faster rates. The services Purchasing Managers' Index came in at 54.4, in line with flash estimate, and up from 54.2 in July.

The survey data for the third quarter so far suggest the single currency area is on course to at least match the 0.4 percent expansion of GDP seen in the second quarter, yet the downturn in optimism raises questions over whether this pace of growth can be sustained into the fourth quarter, Chris Williamson, chief business economist at IHS Markit said.

National PMI data again pointed to a broad-based expansion of economic output. All countries recorded an increase in activity, with growth again led by Ireland. Germany and France both reported marked and accelerated rates of growth.

Germany's private sector expanded at the fastest pace in six months in August. The composite PMI climbed to 55.6 from 55.0 a month ago. Nonetheless, the score was below the preliminary 55.7.

The services PMI improved to a 6-month high of 55.0 from 54.1. This was also weaker than the flash 55.2.

Reflecting stronger growth in services and manufacturing, France's private sector expanded at faster pace. The final composite PMI came in at 54.9 versus 54.4 in July. The flash reading was 55.1.

At the same time, the services PMI rose to 55.4 in August from 54.9 in July but below the flash 55.7.