Euro Area Private Sector Activity Slows; German Sentiment Weakens

Arthi Gupta
23 Aug, 2011
New York City

Euro area private sector activity growth remained moderate in August. German economic sentiment worsened in August but leading economic index increased in June. Norway gross domestic product expanded and Swedish employment rose in the second quarter.

[R]2:30 PM Frankfurt – Euro area private sector activity growth remained moderate in August. German economic sentiment worsened in August but leading economic index increased in June. Norway gross domestic product expanded and Swedish employment rose in the second quarter.[/R]

Euro-zone Private Sector Growth Steady

Euro-zone private sector activity growth remained at a two-year low in August, Markit Economics said on Tuesday.

The Flash Composite Output Index remained unchanged at 51.1 in August. The flash services business activity index dipped to 51.5 in August from 51.6 in July and the manufacturing PMI declined to 49.7 in August from 50.4 in July.

German Private Sector Growth Slows

Germany''s private sector growth slowed in August, Markit Economics said. The Flash composite output index fell to 51.3 in August from 52.5 in July. The index reached its lowest since July 2009.

The manufacturing Purchasing Managers'' Index remained unchanged at 52 in August and the services PMI fell to 50.4 in August from 52.9 in July.

French Private Sector Activity Grows

French private sector activity growth improved in August, survey data from Markit Economics showed.

The Flash Composite Output Index climbed to 53.6 in August from 53.2 in July.

The Flash Purchasing Managers'' Index for manufacturing declined to 49.3 in August from 50.5 in July and the services PMI advanced to 56.1 in August from 54.2 in July.

German Leading Index Up, Sentiment Worsens

Germany''s leading economic index increased to 111.9 in June from 111.0 in May, according to data from a survey conducted by the Conference Board, mainly due to a substantial contribution from new orders in investment goods industries.

The coincident economic index, which measures current economic situation, rose to 106.4 in June from 106.1 in May driven by a large gain in retail trade.

German economic sentiment deteriorated in August, the Mannheim-based ZEW Centre for European Economic Research said today.

The corresponding indicator fell by 22.5 points to minus 37.6 and the assessment of the current economic situation declined by 37.1 points to 53.5 points in August.

Norway GDP Expands

Norway''s gross domestic product grew a seasonally adjusted 1% in the second quarter, following a revised 0.5%t rise in the previous three months, data from Statistics Norway showed on Tuesday.

Swedish Employment Rises

Sweden''s employment increased in the second quarter, data released by Statistics Sweden showed.

The number of employees in Swedish firms rose 3.3% annually to 4.19 million in the second quarter. Employment in the private sector increased 4.7% and in the public sector edged higher 0.3%.

Swiss Surplus Improves

Switzerland''s trade surplus increased to Sfr2.82 billion in July compared the Sfr1.77 billion surplus logged in June, data from the Federal Customs Administration showed on Tuesday.

Exports declined 3% in July from the previous month, offsetting the 3.8% growth in June. Imports rose 0.1% in July after registering a monthly growth of 1% in June.