Eurozone services sector under pressure, exports fall

Eurozone services activity grew only marginally in August as demand stalled and overseas orders fell sharply, the HCOB Eurozone Services PMI survey showed on Wednesday.

The Services PMI Business Activity Index slipped to 50.5 from July’s four-month high of 51.0, signalling slower expansion. New export orders declined at the fastest pace in three months, while overall demand was broadly flat.

Firms continued to hire, with employment growth the strongest since April, extending a hiring streak of more than four years. Optimism for the year ahead remained positive but stayed below the long-term average. Input cost pressures rose, adding to inflationary concerns.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser