Business growth in the EuroZone slowed in August, pulled down by the disappointing performance of Germany’s service industry.
The overall Euro Zone’s service industry PMI figure for August came in at 52.8, according to a private sector survey by Markit. This was down 0.3 points from both July’s measure and analysts’ estimates, and is further evidence that the bloc may be struggling to grow.
Germany performed particularly poorly with a PMI figure of 51.7, down 1.6 points from the previous month and the lowest figure since 2014. Their performance was in sharp contrast to the surprisingly strong performance by both Italy and Spain, whose PMI figure rose to 52.3 and 56 respectively.
Overall the figures were some of the weakest since the start of the year, suggesting that the European Central Bank’s stimulus programmes are failing to have the desired effect. Commerzbank economist Peter Dixon commented:
“The ECB’s policies don’t seem to be stimulating the kind of activity that is desired and it might prompt them to do more but ultimately it shows the limits of monetary policy.”