The Eurozone economy contracted further in August, although the contraction was less severe than feared. This was revealed by preliminary figures from Markit on Tuesday. The purchasing managers index for the service sector was 50.2 in August against 51.2 in July. The expectation was 50.5. The purchasing managers index for industry appeared in the preliminary measurement decreased from 49.8 in July to 49.7 in August. Economists expected a decrease to 49.0. The composite index thus decreased from 49.9 to 49.2, the lowest reading in 18 months. Previously, an index of 49.0 was expected. An index reading greater than 50 indicates growth, while less than 50 means contraction.
The economic activity in the service sector in the United States shrank further in August, while industry grew less fast. This was evident from preliminary figures from S&P Global on Tuesday. The preliminary purchasing managers index for the service sector decreased from 47.3 to 44.1, and thus to the lowest level in 27 months. The purchasing managers index for industry deteriorated from 52.2 to 51.3, also the lowest level in over two years. The composite purchasing managers’ index came to 45.0, from 47.7 a month earlier, and this level was also last reached more than two years ago. With the exception of the corona period between March and May in 2020, economic output has not declined that much since S&P Global has been tracking this data, economist Chris Williamson said in a note.
Consumer confidence in the Eurozone improved in August. This appeared Tuesday from preliminary figures from the European Commission. The index, which reflects the confidence, increased from a historic low of -27.0 in July to 24.9 negative this month.
The 6M Euribor increased with 5 basis points to 0.91% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.19% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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