File photo: On April 27, 2020, staff wore protective masks at the Volkswagen assembly line in Wolfsburg, Germany. SwenPfoertner / Pool via REUTERS

23 Aug 2021

Jonathan Cable

London (Reuters) – The rapid coronavirus vaccination has allowed more businesses to reopen and customers to venture out, and business activity in the euro area has risen sharply this month for the 20th year of July . I fell from a high monthly rate. ..

Without continued supply chain disruption, business could grow faster, but remain optimistic for fears that new strains of coronavirus will lead to further restrictions. ..

The IHS Markit Flash Composite Purchasing Managers Index, which is considered a good indicator of economic health, fell from 60.2 last month to 59.5 in August. It was above the 50 mark that separates growth and contraction, but was below Reuters poll estimates of 59.7.

“The eurozone economy is reigniting in all cylinders as the rebound is expected to have a positive effect on growth. Concerns remain about the impact of the delta variant and lack of entry, but so far . We did not shake up the rebound, ”said Bart Colin of ING.

Previous studies have confirmed that service and manufacturing metrics remain firmly in the growth territory of Germany, ensuring that Europe’s largest economy is on the road to recovery.

In France, the bloc’s second-largest economy, growth in business activity slowed compared to July, but remained resilient as raw material supply and COVID-19 health protocol issues affected trade. Made.

However, despite strong inflationary pressures that had cooled somewhat, the post-British economic recovery slowed sharply as companies suffered from unprecedented shortages of personnel and equipment.

The market was not guided by PMI data as investors considered a timeline that could reduce financial stimulus ahead of Federal Reserve Chairman Jerome Powell’s speech at Jackson Hall this week, COVID- We focused on fears that 19 delta variants will hamper growth. [MKTS/GLOB]

EMPLOYMENT INCREASE

The company has increased its workforce in the eurozone at an all-time high, but has still failed to close all new business, building its backlog at the third fastest pace in research history. Combined employment index held at 56.1.

The PMI, which covers the bloc’s dominant services sector, rose from its 15-year high of 59.8 in July to 59.7. A Reuters poll predicted 59.8.

Demand has slowed only slightly since July, suggesting that the rebound will continue, but the optimistic service business expectations index fell from 69.1 to 68.6 about a year ahead.

Maddalena Martini of Oxford Economics said:

“As a result, the level of forecast uncertainty remains very high, but we expect a strong recovery in the coming quarters.”

Manufacturers had a stronger month, falling below July poll estimates of 62.8 and 62.0, but PMI well above the breakeven point of 61.5. The index measurement output sent to the composite PMI increased from 61.1 to 59.2.

However, delays in supply (delivery index close to poor readings) once again played an important role in the increase in the cost of raw materials needed by factories. The input price index was 87.3, from a record 89.2 in July.

(Report by Jonathan Cable, edited by Catherine Evans and Nick Macfie)