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EMU: PMI Composite Final
| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 52.1 | 52.1 to 52.1 | 52.0 | 52.0 |
| Services Index | 51.7 | 51.7 to 51.7 | 51.6 | 51.7 |
Highlights
The eurozone economy maintained steady momentum in August, with the composite PMI unchanged at 52.0, its joint-highest level in eight months and close to the long-term average of 52.3. Growth was supported by solid increases in output and new orders, while private-sector employment expanded for the first time in 2026. Particularly encouraging was the first rise in export orders in four-and-a-half years, driven mainly by manufacturing.
However, the recovery remained geographically and sectorally uneven. Spain and Italy recorded marked expansions, Germany achieved modest growth, and France experienced an eighth consecutive contraction. Meanwhile, the services PMI edged down from 51.7 to 51.6, indicating continued but slightly weaker expansion. Service-sector growth relied primarily on domestic demand because export orders declined marginally.
Inflationary conditions also remained challenging. Economy-wide input-cost inflation eased fractionally, while output-price growth was unchanged. Within services, however, both cost and selling-price inflation reached three-month highs. This divergence suggests that persistent wage and operating costs could complicate monetary policy decisions.
In summary, the figures portray a resilient but restrained recovery as demand and employment are improving, yet elevated inflation, weak confidence and uneven national performance limit the prospects for stronger near-term growth. These updates take the RPI to minus 2 and the RPI-P to 6, meaning that economic activities continue to stay within the expectations of the euro zone economy.
Market Consensus Before Announcement
The consensus sees no revision in the final from the flash at 52.1 for composite and 51.7 for services.
Definition
The Composite Purchasing Managers' Index (PMI) provides an estimate of private sector output for the preceding month by combining information obtained from surveys of the manufacturing and service sectors of the economy. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster is output growing (contracting). The report also contains the final estimate of the services PMI. The data are provided by S&P Global using a representative sample of around 5,000 manufacturing and services companies, the former including Germany, France, Italy, Spain, the Netherlands, Austria, the Republic of Ireland and Greece and the latter Germany, France, Italy, Spain and the Republic of Ireland.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.