The euro zone's sentiment has further deteriorated, with the Composite Purchasing Managers' Index (PMI) falling to a 33-month low in August as the economic downturn spread from the manufacturing to the service industry, clouding the region's economic prospects. The U.S. Composite PMI fell to a six-month low in August, although it maintained its expansion.

 

Affected by the poor performance of PMI data in the euro zone, the exchange rate of the euro against the US dollar fell 0.35% on the 23rd to 1.0805 US dollars, rewriting the lowest since June 15.

 

Financial data provider S&P Global announced on the 23rd that the initial value of the US comprehensive PMI in August fell to 50.4 from 52 in July, a six-month low but above the 50 line for prosperity and contraction. Among them, the service industry PMI fell from 52.3 to 51, a six-month low. Manufacturing fell to 47 from 49, a two-month low and below 50.

 

U.S. business activity continued to expand in August but nearly stagnated, mainly due to further deterioration in manufacturing conditions and a loss of momentum in the services sector. According to corporate returns, demand continued to be weak at a time when prices and interest rates remained high, adding to uncertainty for economic growth in the third quarter.

 

S&P and Hamburg Commerzbank (HCOB) also announced on the same day that the preliminary Eurozone composite PMI in August fell to 47 from 48.6 in July, not only a 33-month low, but also lower than 50 and the market forecast of 48.8. Among them, the service industry PMI fell from 50.9 to 48.3, a 30-month low, and the manufacturing PMI rose from 42.7 to 43.7, the highest in three months.

 

Business activity in the euro zone further weakened in August, with the service industry shrinking for the first time since December last year. The manufacturing industry improved slightly but is still below the 50 level. Some analysts expect that the manufacturing industry may begin to bottom out.

 

Cyrus de la Rubia, chief economist of HCOB, said: "The Eurozone service industry is showing signs of recession, following the poor performance of the manufacturing industry. Based on PMI data, the Eurozone economy is likely to shrink by 0.2% in the third quarter. %."

 

Europe's economic locomotive, Germany's composite PMI fell from 48.5 to 44.7 in August, a 39-month low. The manufacturing industry continued to shrink, and the service industry PMI fell to a nine-month low, shattering hopes that the service industry could save the economy.

 

France's composite PMI in August was 46.6 as in July, of which the service industry PMI fell to a 30-month low, and the manufacturing industry rose to a five-month high but was below 50.

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