Manufacturing output in the euro zone fell back in August, failing to meet market expectations, as economic and geopolitical uncertainties hit demand in the region.
Euro zone manufacturing purchasing managers’ index (PMI) fell to 50.7 in August, down from 51.8 in July, according to data from analysis firm Markit. The 50-point mark separates expansion from contraction. Economists polled by Reuters had expected a figure of 50.8.
Rob Dobson, Markit’s senior economist, said recovery in manufacturing production had slowed for the fourth straight month and hit a 13-month low. “Although some growth is better than no growth at all, the braking effect of rising economic and geopolitical uncertainties on manufacturers is becoming more visible. This is also the case on the demand front, with growth of new orders and new export business both slowing in August,” he said in a statement.