The Bottom Line
- Uncertainty about Brexit’s impact may have rippled through financial markets, but so far the biggest economies in continental Europe seem to have taken it in stride.
- The latest PMI data—reflecting purchasing managers’ answers to a range of questions about business conditions—suggests growth could continue expanding at a slow but steady pace.
- Coming in at 53.3, the Eurozone Flash Composite PMI for August, was better than expected—and the highest in seven months.1
- The latest data from Italy and Spain (from July) also suggest continued expansion, but at a slower pace than three months ago.2
- In Germany, the August PMI data for the Continent’s strongest economy slipped slightly from 54.5 in July to 54.4, but that remains the best showing in the region.
- Meanwhile, France jumped from 50.1 in July to 51.6 in August; a significant lift and France’s best level since last October.
- Across the Channel, however, the data is less encouraging. The July Composite PMI for the UK was 47.5, dramatically lower than the 52.5 figure for June, and suggests contraction.
- Source for all data is Bloomberg.
- The August PMIs for both countries will be reported on September 1st.
About this chart:
The chart above shows the latest Composite PMI level available (blue column) and the PMI levels from 3 months earlier (red square) and 12 months earlier (yellow triangle) for the Eurozone, Germany, France, Italy, Spain and the United Kingdom.