Eurozone Private Sector Downturn Points To Recession In Q3:

Eurozone Private Sector Downturn Points To Recession In Q3:


Eurozone's private sector contracted more than initially estimated in August, adding to concerns that the economy is on course to fall back into technical recession in the third quarter, data from a survey by Matkit Economics showed Wednesday.
The seasonally adjusted composite output index, designed to measure activity in both the manufacturing sector and the service sector, dropped to 46.3 in August from 46.5 in July. The index was initially estimated to rise to 46.6. A reading below 50 indicates contraction.
The August survey showed widespread contraction of economic activity across almost all of the surveyed nations. The steepest declines were still registered in Spain and Italy, while Germany and France continued to record modest declines.
The downturn in output was steeper in the manufacturing sector, though the rate of contraction eased to a two-month low.
At the same time, the relevant index for the services sector came in at 47.2 in August, down from 47.5 seen in the preliminary estimates and 47.9 recorded in July. Business activity in the services sector fell for the seventh straight month, and at a slightly faster pace than in July.
"The final August PMI came in only slightly below its earlier flash estimate, leaving the Eurozone economy on course to fall back into technical recession in the third quarter," Rob Dobson, Senior Economist at Markit said.
"Sharp declines in new orders at manufacturers and service providers, plus further job losses, mean that there is little prospect of a sustained improvement in economic conditions over the near-term."

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