Eurozone Manufacturing Enters Growth Territory

Business activity in the Eurozone grew in August at its fastest pace in 15 months, according to preliminary PMI data. The increase is mainly due to manufacturing, which entered a growth trajectory for the first time in over three years.

The composite PMI rose to 51.1 points from 50.9 in July. The manufacturing PMI rose to 50.5 points from 49.8 in July, marking the first sign of expansion in the sector after more than three years. In services, the PMI fell slightly to 50.7 points from 51.0 points in July.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said that economic activity strengthened in both manufacturing and services.