However, the manufacturing PMI fell to an eight-month low of 45.6 from 45.8 in July. The output gauge, however, rose to 45.7 from 45.6. Optimism among production managers waned again, and they cut jobs at the fastest pace since November. The manufacturing employment index fell to 46.6 from 47.0.
Today, German and French PMI data were also published.
In France, thanks to the economic momentum generated by the Paris Olympics, the Hcob Flash France Composite PMI output index rose more than three points in August to 52.7, from 49.1 in July. S&P Global noted that “strong expansion in services activity led to the best month of French economic growth since March 2023. In particular, this was the first time since April that the index registered a value above 50.0 and thus in the territory that indicates growth in company activity. The expansion in August was relatively modest overall and essentially in line with the long-run survey average. Moreover, the increase in output reported in the headline data was the strongest since March 2023. The Hcob Flash France Services PMI jumped to 55 from 50.1 in July, its highest level in 27 months. However, the Hcob Flash France manufacturing PMI fell to 42.1 points from 44 in July, its lowest level in 8 months.
However, the performance of the European locomotive Germany is still poor. The German economy also continued to shrink in August. The Hcob PMI composite index came in at 48.5 points, down from 49.1 in July and well below the 50 threshold that separates growth from recession. Looking at the individual sectors, the manufacturing sector showed a further sharp slowdown, settling at 42.1 points after 43.2 points in the previous month, marking the fifth consecutive monthly decline. The services data also show the difficulties of the sector, which is still in growth territory and not recession: 51.4 points in August, thus above the 50 threshold, but down from 52.5 points in July.
OECD, Q2 GDP +0.5%, Italy second to last in G7
OECD GDP grew by 0.5% in the second quarter of 2024, similar to the previous quarter and in line with expectations. The OECD reports this. G7 GDP grew at a faster rate, moving from +0.2% in the first quarter to +0.5% in the second quarter. Italy’s GDP growth in the second quarter stalled at +0.2%, slowing from +0.3% in the first quarter. This balance puts the Korean peninsula in second-last place, behind Germany with -0.1% of GDP.
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