Eurozone services growth slows to 51.6, but private sector activity holds steady amid rising job creation
The Eurozone services PMI dropped to 51.6 in August, yet the combined manufacturing and services index remained above the expansion threshold while employment reached an eight-month high.
Eurozone service growth decelerated to a two-month low in August, as the Purchasing Managers' Index fell to 51.6 from 51.7 in July. This decline came slightly below the preliminary estimate of 51.7. The broader private sector index, which includes manufacturing, stood at 52.0, matching its long-term average and confirming continued expansion above the 50.0 threshold. New business within services rose solidly due to strong domestic demand, though export orders fell for the first time since early in the year. Conversely, private-sector export orders grew for the first time in 4.5 years, driven by increased manufacturing demand. Employment in the services sector expanded at its fastest pace in eight months, extending a trend that began in June. These figures indicate resilient activity across the bloc's private economy despite slowing service-specific momentum.
