The index Services PMI published by S&P has fallen three points in August in the euro zone, standing at 47.9 compared to 50.9 in July. This figure disappoints the expectations of the market, whose consensus expected a slighter setback, towards 48.3.
After seven months of expansion, the services indicator falls into contraction territoryreaching its lowest level in thirty months, since February 2021.
Commenting on the PMI data, the Dr. Cyrus de la Rubia, chief economist at the Commercial Bank of Hamburg, said: “The eurozone did not fall into recession in the first part of the year, but the second half will present a greater challenge. Because the service sector, once a stabilizer, became a drag on the economy, while the manufacturing sector has not yet bottomed out, most likely. The disappointing numbers contributed to a downward revision to our GDP forecast, which currently stands at -0.1% for the third quarter.”
EUR/USD reaction
He EUR/USD has tumbled on the data to around 1.0750, its lowest level in almost three months. At time of writing, the pair is trading above 1.0753, losing 0.39% daily.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
