Eurozone economic activity strengthened minimally in August

The eurozone composite BMI rose to a 12-month high of 51 in August, from 50.9 the previous month, but still only indicates modest growth. The 50-point threshold separates performance from contraction.

Data released on Wednesday showed that growth in the services sector slowed to a two-month low of 50.5, down from a four-month high of 51 in July. On Monday, it was reported that the eurozone manufacturing sector’s BMI rose for the first time in three years, moving above the 50-point mark, to 50.7 from 49.8 in July.

The composite index was highest in Spain in August at 53.7, which is still a two-month low. Italy’s was the second highest at 51.7, a three-month high. Ireland’s 51.3 was a 14-month low and Germany’s 50.5 was a two-month low. France’s composite BMI was its highest in 12 months at 49.8 in August, but still indicates a contraction in economic activity.