Euro Zone loses economic steam; key indicator slumps to two-month low

DPA Berlin | Updated on August 21, 2014

The Eurozone economy lost momentum in August as a key business indicator released Thursday slumped to a two-month low.

The purchasing managers index for the currency bloc’s manufacturing and service sectors fell to a lower-than-forecast reading of 52.8 this month from 53.8 in July, the London-based Markit research group said.

Analysts surveyed by dpa-AFX had expected the PMI to come in at 53.4 points in August. Still, a reading above 50 indicates economic expansion.

“Even before rising geopolitical headwinds began to buffet the economy, the double-digit unemployment rate prevailing in the Eurozone was already excessively high,” said Markit senior economist Rob Dobson.

“Signs are that the modest job creation of recent months has stalled in August,” he said.

Published on August 21, 2014

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