Gracing the European trading session was the publication of economic data from the European Zone that showed a decline in both the manufacturing and service sectors in August, according to data released by S&P Global.
German manufacturing activity was reported to have increased to 49.8 this month, slightly better than expectations for a rise of 48.0 and the previous reading of 49.3. However, the figures recorded show that the manufacturing sector remains in contraction.
As a note for INTRADAY readers, numbers above 50.0 refer to expansion in the industry, while numbers below 50.0 indicate contraction.
The European giant's economy also recorded a contraction in the services sector with only an increase of 48.2 in August from 49.7 recorded previously.
Meanwhile in France, service activity grew by 51.0 this month, but down from 53.2 recorded in July. The manufacturing sector met expectations with a contraction of 49.0 from 49.5 in the previous month.
Correspondingly, the manufacturing sector in the entire European Zone fell to the lowest level in more than two years with a record of 49.7 in August, while service activity was the weakest since March 2021 at 50.2.
S&P Global said that the latest PMI data showed that the European Zone economy contracted in the third quarter of this year. Cost-of-living pressures mean the recovery in the services sector from the Covid-19 shutdown has eased, while manufacturing remains mired in contraction in August.
