Eurozone PMI reaches 26-month high as business recovery continues

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Eurozone PMI reaches 26-month high as business recovery continues

(Xinhua) 20:29, September 04, 2013

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The eurozone's Purchasing Managers Index (PMI) rose to 51.5 in August, its highest level since June 2011, financial information services company Markit reported Wednesday.

It was up from 50.5 in July, its fifth consecutive monthly improvement and second straight month above 50, indicating ongoing growth in business activity. A PMI reading of 50 points or greater indicates expansion.

Manufacturing led the upturn in August, with production volumes expanding to the greatest degree since May 2011. Meanwhile, the service sector moved back into growth territory for the first time in just over 18 months.

Germany saw output rise at the fastest rate since January. Its all-sector output growth rose to 53.5, making it the strongest performer in August.

Many debt-ridden countries, such as Italy and Spain, moved out of contraction territory, registering 50.3 and 50.8 respectively, halting periods of decline that began in May 2011.

However, France registered a faster drop in output than in July. The downturn in the service sector moderated slightly, but manufacturing dipped back into contraction.

"The eurozone recovery is looking increasingly broad-based, with more sectors and more countries emerging from recession," said Chris Williamson, chief economist at Markit.

However, he said: "The fact that companies remain reluctant to take on staff - due to the need to cut costs to boost competitiveness and offset rising oil prices - suggests that there's a long way to go before the recovery feeds through to a meaningful job market improvement."

（Editor：WangXin、Hongyu）