LONDON, Sept 5 (Reuters) – Economic activity in the eurozone contracted in August for the second consecutive month on weaker demand as consumers expressed caution over rising living costs and of the deterioration of the economic outlook, show the final results of the S&P Global survey of purchasing managers in the services sector in Europe published on Monday.
The composite PMI index, considered a reliable barometer of the evolution of economic activity as a whole, fell last month to 48.9, an 18-month low, after 49.9 in July. A first estimate had given it at 49.2 last month. The bar of 50 separates contraction and growth of the activity.
“A second month of deteriorating economic conditions in the euro zone reinforces the likelihood of a GDP contraction in the third quarter,” warned Chris Williamson, chief economist at S&P Global.
“August saw output fall at an accelerated pace as businesses and households cut spending amid soaring inflation and growing uncertainty about the economic outlook,” he added. .
The new business sub-index fell in August to 46.9, its lowest since November 2020, from 47.6 the previous month.
The PMI for the services sector alone stood at 49.8 in August, the first month since March 2021 that it has moved below the 50 threshold. The first estimate put it at 50.2 and in July it was came out at 51.2. (Report Jonathan Cable; French version Claude Chendjou, edited by Sophie Louet)