Olympics deliver unexpected boost to euro area PMIs in August
By Alexander Bueso
Date: Thursday 22 Aug 2024
(Sharecast News) - Economic activity in the euro area picked up unexpectedly last month, mainly due to the boost from the Olympics, the results of a closely followed survey revealed.
But some economists were quite downbeat regarding the outlook, arguing that the Paris games would fade while the manufacturing sector was in "rapid decline".
The preliminary result for Hamburg Commercial Bank's Eurozone composite purchasing managers' index for manufacturing and services rose from 50.2 in July to 51.2 for August.
A PMI for Eurozone services activity alone increased from 51.9 to 53.3, while that for factories dipped from 45.8 to 45.6.
Input cost inflation across the two sectors eased to an eight-month low but even so still increased markedly midway through the third quarter.
Selling prices on the other hand rose at their quickest pace in four months.
Commenting on the results of the survey, Dr.Cyrus de la Rubia, chief economist at HCB, said: "But with the temporary Olympic boost in France fading and signs of waning confidence across the Eurozone's service industry, it's likely only a matter of time before the struggles of the manufacturing sector start weighing on services too."
The survey data was collected between 12-20 August.
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