Eurozone Manufacturing Falls for Seventh Straight Month

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By Trey Thoelcke Published
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The Markit preliminary composite purchasing managers’ index (PMI) for the eurozone indicated that services and manufacturing output in the region contracted for a seventh consecutive month in August. But the pace of decline was marginally slower than in July.

The index rose to 46.6, compared to a reading of 46.5 for July, but is below the 50-point level that separates contraction from expansion. Economists had expected the reading to remain unchanged.

The services PMI reading slipped to 47.5 from 47.9 in July, and the manufacturing PMI advanced to 45.3 from 44.0.

The contraction continued across the eurozone. National indexes for the core countries of Germany and France both signaled shrinking output.

Rob Dobson, an economist at Markit, said:

Hopes that German economic strength will aid recovery in the broader currency union were dealt a blow by its rate of economic contraction accelerating and further signs that its export engine has slammed into reverse gear. … France may be edging closer to stabilization, while conditions outside the big two remain weak overall.

As the fiscal crisis clouds the economic outlook and investor confidence erodes, French President Francois Hollande and German Chancellor Angela Merkel are scheduled to meet in Berlin Thursday.

European stock markets trimmed gains in midmorning action on Thursday, following the release of PMI data.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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