The companies in the euro area have seen the volume of new orders increase in August for the first time since May 2024, helping the overall activity to expand to the fastest pace in 15 months despite the weakness of persistent exports, showed a survey on Thursday.
The preliminary preliminary compound index preliminary HCOB (SME), completed by S&P Global, rose to 51.1 in August, from 50.9 in July, marking the third consecutive monthly improvement and the highest reading since May 2024. Reuters Survey prevented the fall at 50.7.
SME readings above 50.0 indicate the growth of the activity, while the following readings indicate a contraction.
“The small increase in the compound SME … indicates that the economy of the euro area continues to resist very well in global storms,” said Bert Colijn of Ing.
“The improvements of the volume of new requests and an increase in hiring contribute to a framework of growth of growth, but it probably seems a moderate rhythm, significant negative risks from the prospects.”
The industrial sector has shown a considerable improvement, with its SMEs that rises from 49.8 to July to 50.5, moving for the first time to the territory of expansion in over three years. Industrial production grew at the fastest pace at almost three and a half years, with the below -dice that goes from 50.6 to 52.3.
The service activity continued to expand, but at a lower pace, with the SME in the sector that drops from 51.0 to July to 50.7.
Eurozone companies continued to hire for the sixth consecutive month, with the rhythm of the creation of jobs that accelerated the fastest since June 2024. The work gains focused on the service sector, while the producers continued to lose work.
The pressure for inflation intensified in August, with the input costs that increase the most pronounced rate in five months. The inflation of service costs has accelerated at the highest level since March, while the prices of the product in the block have increased the stronger pace in four months.
“The European Central Bank can be a little frightened by growing pressure on the costs of the service sector. After all, it is betting on the slower wage growth to help reduce inflation in this crucial part of the economy,” said Ciro de la Rubia of the Commercial Bank of Hamburg.
“Having said that, there is a little relief from the fact that the inflation of sales prices in the service sector has remained more or less stable.”
Source: Terra
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