The composite Purchasing Managers' Index for the euro zone produced by IHS Markit came in at 52.9 in August, below a flash estimate of 53.3 and July's reading of 53.2. It is the lowest level in 19 months; however, it still remains above the 50 mark that divides growth from contraction.
The PMI in the bloc's services sector was 52.8, down from July's 52.9 and flash estimate of 53.1.
According to Chris Williamson, the chief economist at IHS Markit, a slowdown in Germany’s business growth is causing great concern among market participants as the PMI score indicates a risk of further slowdown in eurozone growth to 0.3% in the third quarter.
Meanwhile, the Markit Purchasing Managers' Index for the services sector in Britain jumped to a record high of 52.9 in August from July's low of 47.4, beating analysts’ expectations of a rise to 50.
The UK composite index climbed to 53.6 in August from 47.6 in July. According to Markit, it is too early to say whether the growth was due to a decrease a month earlier or it is a new wave of recovery after the market shock caused by Britain’s decision to leave the EU.
