With economic growth in Germany looking threatened, the eurozone’s manufacturing sector hit a 13-month low in August, with a PMI reading of 50.7, down from 51.8 in July. Many eurozone markets have suffered as tensions continue to escalate between the EU and Russian over the conflict in Ukraine. For instance, Germany’s PMI fell to 51.4, while France’s dropped to 46.9. On the other hand, Ireland had a PMI reading of 57.3, its highest since 1999.
“Although some growth is better than no growth at all, the braking effect of rising economic and geopolitical uncertainties on manufacturers is becoming more visible,” Rob Dobson, a senior economist at Markit which oversees the PMI readings, told the BBC. “France remains a real concern, as does Italy’s descent from solid expansion to stagnation. Signs that growth impetus waned in the key industrial engine of Germany, and in Spain and the Netherlands too, is also less than reassuring.”
The European Central Bank (ECB) is set to meet on Thursday.
