Gondolas and gondoliers, one of the characteristic presences of the canals of the city of Venice, have resumed the transport of tourists with small limitations in the number of contemporary passengers to avoid possible infections.
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LONDON – The eurozone economy lost some momentum in August, but solid growth in the third quarter of this year is well on track, according to preliminary data released on Monday.
The first composite PMI of IHS Markit for the euro area, which analyzes the activity of both manufacturing and services, reached a minimum of two months, from 59.5 in August, against 60.2 in July . A reading above 50 represents an expansion of economic activity.
“The mood comes from a second month of job creation, the strongest in 21 years, reflecting companies’ efforts to increase operational capacity and meet demand, which should ultimately help reduce the price pressure, ”Chris Williamson, chief economist at IHS Markit, said in a statement.
The latest business activity data comes as many consumers in the region are enjoying the lifting of Covid-related restrictions, which has boosted the economic recovery in the wake of the pandemic.
Growth estimates from last month showed that the euro area had recovered from a technical recession (defined as two consecutive quarters of economic contraction) by growing 2% in the second quarter of this year.
These dissemination data are important, as the European Central Bank will meet next month and some of its members are pushing talks on reducing some of the ongoing stimuli.
In this context, however, there are some concerns about supply chain problems and higher inflation.
“The concern is that we are seeing some upward movement in wage growth as a result of rising labor market, which could feed into higher inflation, and supply delays coming from Asia, in particular , seem to persist for some time, “Williamson. he also said.
France
French companies did not escape the slowdown during August.
The country’s rapid composite PMI fell to 55.9 in August, from 56.6 in July, representing a 4-month low. However, the data still point to solid growth in the third quarter of the year.
“Despite some of the challenges companies face in terms of supply, it is encouraging to see PMI data constantly indicating solid expansion,” Joe Hayes, a senior economist at IHS Markit, said in a statement.
He added: “Given that we are in the middle of the third quarter, survey data so far suggest we could see another decent result in the corresponding GDP figure.”
Germany
In Germany, where federal elections are to be held next month, business activity also fell to a two-month low.
Germany’s flash composite index stood at 60.6 in August, up from 62.4 in July.
“Although growth has slowed since July, the data continues to point to stronger economic expansion in the third quarter than the provisional 1.5% increase in GDP recorded over the three months to June,” said Phil Smith, associate director of IHS Markit. in a statement.
However, he added that “many manufacturers remain inhibited by a lack of materials and components and delays in supply, which will likely continue to be constraining factors over the coming months.”