MW:Euro-zone Aug. composite PMI falls to 2-year low
By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector activity across the 17-nation euro zone grew at its slowest pace in two years in August, with the Markit composite purchasing managers index falling to 50.7 from 51.1 in July. A reading of more than 50 signals growth, while a figure of less than 50 indicates contraction. The reading came in below a preliminary estimate of 51.1. The final August manufacturing PMI released last week showed a contraction in growth, while the final services PMI reading released Monday slipped to a 23-month low of 51.5 from a July reading of 51.6, in line with an earlier estimate. "The PMI suggests that economic growth in the third quarter is unlikely to improve on the 0.2% seen in the three months to June, and a contraction in the final quarter looks a distinct possibility unless business and consumer confidence improve noticeably in coming months," said Chris Williamson, chief economist at Markit.
