Investing.com - Euro zone private sector activity maintained momentum in August as the manufacturing sector posted a strong rise in growth, according to data released on Wednesday.
The preliminary reading of the Markit manufacturing purchasing managers’ index rose to a two-month high of 57.4 this month up from 56.6 in July. Economists had expected a reading of 56.3.
The manufacturing sector was boosted with output and new orders rising at sharper rates in August. The latter was boosted by the fastest rise in exports for six-and-a-half years.
The services PMI eased to a seven month low of 54.9, compared to expectations for 55.4, down from 55.4 a month earlier.
Despite the slowdown, the rate of expansion remained solid amid a further increase in new orders.
The composite output index, which measures the combined output of both the manufacturing and service sectors rose to a two month high of 55.8 from 55.7 in July, compared to expectations for 55.5.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The latest PMI readings for the eurozone signal a continuation of the recent strong performance of the currency bloc’s economy. This stabilisation in the rate of expansion is pleasing, following signs of growth easing in recent months," said Andrew Harker, associate director at survey compiler Markit.
“The survey data over the first two months of the quarter are consistent with only a fractional easing in the rate of growth of GDP from the 0.6% rise in Q2."