The eurozone's August services purchasing managers' index (PMI) was revised down to 51.6, slightly below July's reading and the flash estimate of 51.7, marking a two-month low. The composite PMI, covering both manufacturing and services, stood at 52.0, close to the long-run average of 52.3, indicating that the private sector continued to expand steadily, albeit not strongly. Joe Hayes, senior principal economist at S&P Global, said the third quarter got off to a solid growth trajectory, citing a recovery in manufacturing momentum and the dissipation of weakness in the services sector due to high energy prices. New orders in the services sector were driven by domestic demand, while export orders increased overall for the first time in four and a half years. Price pressures remained elevated at historical levels, and Hayes noted that the European Central Bank (ECB) may consider this justification for a rate hike at its policy meeting next week. Among individual countries, Germany saw its highest reading since March, Italy and Spain remained above 50, while France contracted for the eighth consecutive month.
