Euro Zone Output Contracts, Retail Sales Drop

Arthi Gupta
05 Sep, 2012
New York City

Euro zone economic downturn continued in August, as output contracted in Germany, France, Italy and Spain. Swiss consumer prices fell in August and retail sales in the euro zone declined in July.

[R]2:30 PM Frankfurt – Euro zone economic downturn continued in August, as output contracted in Germany, France, Italy and Spain. Swiss consumer prices fell in August and retail sales in the euro zone declined in July.[/R]

Euro Zone Output Contracts, Retail Sales Drop

Euro zone economic output contracted for the seventh successive month in August, data from a survey by Markit Economics showed today.

The seasonally adjusted composite output index, designed to measure activity in both the manufacturing sector and the service sector, dropped to 46.3 in August from 46.5 in July, below its earlier flash estimate of 46.6.

The Services Business Activity Index declined to 47.2 in August, from 47.5 in the preliminary estimates and 47.9 recorded in July.

August data signaled a widespread contraction of economic activity across all member nations covered by the survey. The steepest rates of decline were registered in Spain and Italy, while modest downturns in Germany and France also continued.

Separately, retail sales in the euro zone declined 0.2% on a monthly basis in July, following a 0.1% gain in June, data released by Eurostat showed.

From a month ago, food, drinks and tobacco decreased 0.9% and the non-food sector rose 0.9% in the euro area. Annually, sales fell 1.7% in July.

On an annual comparison, food, drinks and tobacco fell 1.7% while the non food sector decreased 1% in the euro area.

German Service Sector Declines

Germany recorded the sharpest drop in services activity since July 2009, Markit Economics said.

The services Purchasing Managers'' Index fell to 48.3 in August from 50.3 in July.

The final composite output index, which measures the combined output of the manufacturing and service sectors, dropped to 47, from 47.5 in July.

French Business Activity Dips

French business activity fell slightly in August, according to the final results of a survey by Markit Economics released today.

The seasonally adjusted final Markit France Services Business Activity Index slipped to 49.2 in August from 50 in July.

The composite output index – which measures the combined output of the manufacturing and service sectors – climbed to 48 in August, little-changed from 47.9 in July.

Spanish Services Sector Contracts

The Spanish service sector remained stuck in contraction in August, data from a survey by Markit Economics showed.

The seasonally adjusted purchasing managers'' index for the service sector rose to 44 in August from 43.7 in July,

Italian Service Sector Output Gains

Italian service sector output fell during August on the decrease in new business inflows. The service sector decreased at a slower pace.

The seasonally adjusted purchasing managers'' index for the service sector rose to 44 in August from 43 in July

Swedish Service Sector Activity Eases

Sweden''s service sector growth slowed in August, data from a survey by Swedbank showed today.

The purchasing managers'' index for the manufacturing sector declined to 50.8 in August from 54.8 in July.

Swiss CPI Drops

The Swiss consumer price index fell 0.5% annually in August following a 0.7% fall in July, according to data released by the Federal Statistics Office.